A number of investors could be receiving poor advice if they rely on their friends and family, it has been suggested.

Research by Birmingham Midshires found that 16 per cent of the 2,000 people it surveyed had received bad advice from their friends or members of their family.

The firm noted that 37 per cent had received poor advice on investments, while ten per cent were ill-advised about pensions.

Commenting on the findings, Tim Hague, managing director of Birmingham Midshires mortgages, said that although it can be “less time-consuming” to seek the advice of people close to you , it makes more sense to obtain expert advice.

“By visiting a qualified expert in financial products, such as an independent financial adviser, you will get impartial financial advice which will help you work your way through the maze of financial products available,” he explained.

In related news, John Howard, chairman of the Financial Services Consumer Panel, recently said that the provision of generic financial advice will be “all the more vital” in the run-up to the launch of personal accounts.

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