advisers rdr-supportive but at threat

Almost three-quarters of financial advisers in the UK plan to offer full independent advice after RDR is implemented and more than 90% plan to remain active in the industry over the next five years, new research reveals.

advisers rdr-supportive but at threat

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The rate of departures from the advisory industry is also slowing, with only 9.6% of advisers expecting to leave the industry within the next five years, compared to 14% in 2011.

A study titled "Financial adviser behaviour and segmentation" conducted by CoreData Research asked 1,260 financial advisers of their intentions post-RDR.

Only 14.5% said they planned to take the restricted independent advice route, while the majority (73.8%) said they will continue to offer a full independent service.

Nearly 8% (7.7%) admitted they are still not sure what type of service they will offer once RDR kicks in and only 1.4% said they would be giving advice tied to a particular company.

Commenting on this data, CoreData Research said: "Therefore advisers may not be in as short supply post-RDR as widely suspected, although the same may not be said for the client base."

The report also found that over 80% of assets under advice come from clients over 50, which CoreData Research said presented advisers with a considerable challenge.

Craig Phillips, head of UK and Europe at CoreData Research, said: "As more and more clients move into draw down phase and start chipping away at the children’s inheritance, advisers will be forced to seek new client growth from the younger end of the spectrum to drive future value into their businesses."

In a more positive development 62% of advisers said they now hold at least the basic level of qualification under RDR guidelines and are competent to practice post-31 December. This has increased from the 44% of advisers who were in this position last year CoreData Research said.

 

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