Biggest issues facing wealth managers today

Falling adviser numbers and an advice gap are just two of the wave of changes that are uppermost in wealth managers minds, according to research company Aite Group.

Biggest issues facing wealth managers today

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In its latest report, The UK Wealth Management Landscape: Change Is a Certainty, Aite Group found that regulation aiming to drive structural change throughout the retail investments industry, led by RDR, is forcing the wealth management sector to confront fundamental change and demand a more flexible, efficient, client-centric, transparent, and quality proposition.

The 'pain' of RDR

The group adds that consolidation activity among wealth management companies is set to rise as the pain of complying with RDR takes its toll on UK wealth managers. 
 
The research also noted up to 15,000 firms including asset managers, banks, family offices and financial advisers are out to win their share of a potentially huge market opportunity in UK wealth management.
 
Aite Group also noted the lines between these business types have become increasingly blurred, and many firms will have a proposition that spans two, three, or even all four. One model of wealth management does not fit all, concludes the research. Change is certain and will continue as the UK wealth management sector adapts to the new normal.

Business validity

“While the ongoing changes raise questions around the validity of many businesses through the sector, one clear and tantalising opportunity stands out – filling the advice gap will be on the minds of many wealth management firms, the vendors that supply them, and potential strategic market entrants coming in to shake things up,” said Stephen Wall, senior analyst in wealth management at Aite Group.
 
“This opportunity will see an array of ideas, solutions, and endeavours through the next five-year time frame seeking to plug this gap,” Wall added. “Critically, any solution will need to incorporate simplicity, transparency, and light, easy-to-grasp education tools.”