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Advisers’ fears over economy’s impact on their firms outweigh RDR concerns
by Michelle Abrego on Jan 15, 2013 at 12:19
Despite the retail distribution review (RDR) coming into force on 31 December 2012, a higher number of advisers feel the uncertain economic climate will have a more significant impact on business in 2013.
A survey of delegates at the New Model Adviser® conference found that, while 37% believed the RDR would have the biggest effect on their firm over the next 12 months, 43% said tough economic conditions would be a more significant issue (see graph below).
Financial Services Compensation Scheme (FSCS) levies were the biggest concern for 17% of respondents, and 3% said the advent of auto-enrolment would have the biggest effect on their business.
Economic concerns abound
Where the economy was concerned, advisers were unanimous in being worried about the negative impact it might have on their businesses.
Leigh Tarleton (pictured above), managing director of St Helens-based LS Wealth Management, said his clients were anxious about low interest rates and the economy failing to recover.
‘[The economy] directly affects my clients...their number one concern is what their ISA, their pension [etc] is worth. And so, if the economy falls and interest rates take a turn, that’s when the phone goes red hot because everyone wants to know what they’re worth,’ he said.
John Millican, managing director of Colchester-based Fiducia Wealth Management, said he was keeping an eye on the German elections for their impact on the eurozone.
Alok Dhanda, principal of Newcastle-based Dhanda Financial, said the economic climate closer to home meant that some clients were struggling to afford his services. ‘It’s not exactly buzzing in the North East… you see it in property prices, you see it salaries,’ he said.
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