The economic downturn has severely eroded investor trust in financial services companies, a report by independent research agency Investment Trends has found.

Principal Mark Johnston says the problem is that many investors blame financial services companies for creating the global financial crisis.

Mr Johnston says investors are also less likely to seek advice, reflecting a decline in the influence of financial planners. The number of investors who have spoken to a planner about the financial markets has fallen by 18% since last November.

“As with prior downturns, investors have become more concerned with fees, charges and value for money,” he said. “Negative returns have once again increased the focus on cost.”