What does the future look like?
What will the financial advice profession look like five years after the retail distribution review? Some predictions can be made based on the usual assumptions: there will be fewer advisers overall, possibly a 30% reduction, as clients turn off ongoing remuneration, advisers retire, and new threats to pricing and business models emerge.
Financial planning will move upmarket, providing excellent advice to well-off individuals. At the same time, online advice will continue to take over, with offers of good-quality ‘free’ advice; and the market will still be fragmented with very large firms, small boutiques and just a handful of businesses in the dangerous middle ground.
How might financial services look, however, if some of those assumptions changed?