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State of the nation: how advisers are shaping up for RDR
by Amy Rowe on Nov 20, 2012 at 11:38
This year’s Personal Finance Society survey of 2,000 members focused heavily on advisers’ attitude towards the retail distribution review, and how ready they felt they were for life after 31 December 2012. Click through these six charts to find out how many will remain independent, and what fears remain.
Members are RDR ready
Nearly nine in 10 members of the Personal Finance Society consider themselves to be retail distribution review (RDR) ready.
Any RDR uncertainty down to qualifications gap
Of the respondants who said they were not RDR ready, the biggest gap is that of applying for a statement of professional standing.
Almost all of the certificate level members said they had to complete a level four qualification.
Ready to go
When asked 'do you consider your firm or employer to be RDR ready', four in five members felt that their firm or employer was ready for the changes.
Members qualified to certificate level were the least likely to feel their firm or employer is RDR ready.
New service costs needed to bridge gap
Of those who felt their employer was not ready, around three quarters said they needed to implement new service costs disclosure documents and adviser charger models.
Independent advice winning out
Almost two thirds of respondants said that their firm will offer independent advice only from January 2013.
They were asked 'will your firm offer independent or restricted advice from January 2013?' Of those surveyed, one in seven worked for firms set to offer restricted advice only, while one in 10 were unsure or undecided yet.
Investment fund percentages to reap reward
Respondants were asked 'approximately what percentage of your income do you expect to receive from the following types of adviser charging,' with investment funds, retainer fees, fixed rates and hourly rates as options.
Fixed rate charges would provide one quarter of income for new recommendations, advisers said, while retainer fees would account for well under 10% of income across the board, according to the survey.