A survey carried out early in July concluded that financial advisers are “struggling to prepare for the imminent impact of new regulations”.
These new regulations are, of course, the change to investment advice being fee-based with advisers, from 1 January next year, having to replace commissions they are currently used to receiving.
Of the 88 advisers polled, 61% of them said they did not feel prepared for RDR, with 87% admitting they had not finalised their client propositions.
One issue advisers still need to resolve is whether they will describe themselves as ‘restricted’ or ‘independent’, with 57% still uncertain of what their future status will be. One term that may be given a greater is status is that of certified financial planner, with 68% saying within the next five years it will be more important to become chartered than an IFA.
Tony Stenning, Head of UK retail at BlackRock, commented: “With under 130 days until RDR takes effect, many advisers and investors are still wrestling with what the new regulations will mean and how they should act. Some advisers are clearly racing to complete the minimum required qualifications, but this is potentially drawing their attention away from transitioning their businesses and communicating potential changes to clients.”
