There are only three reasons why advisers do not recommend passive or index funds:

1. They are ignorant. Many advisers only know how to sell but don’t know what they are selling. Do you dare to hand over your wealth to an adviser who doesn’t know what he is doing?
2. They are stuck with product providers. Tied-agents are the most pitiful lot because they could only sell their company’s products. If their company products do not have index funds, they cannot sell. But many IFAs companies which claim to be able to sell many products from different companies are in no better shape because the only index funds available for them is the pathetic Infinity series which the fund sizes are so miserable. I believe some of my clients’ own net asset is larger than the fund size!
3. They only sell what pays a commission. Only unit trusts and single premium ILPs pay a commission. Recommending an index fund such as ETFs pays no commission and no trailer fees.