Research conducted by Skandia as part of its latest adviser confidence barometer found that while 43% of advisers believe RDR will improve the standard of advice given to consumers, 29% believe it will have no effect and a similar percentage believe it will have a detrimental impact on advice.
Of that 43%, almost three quarters said higher qualification standards would lead to higher quality advice. Just 19% of those positive about RDR’s effect on advice said a ban on commission would be responsible for the improvement.
Independent advice remains the priority for most advisers, 84% of respondents saying they intended to remain independent.
Just 11% said they intended to offer a restricted advice service; 8% said they would offer this on top of independent advice and 3% planned to switch from independent to restricted.
The study also found that 4% of advisers believe the RDR will “force them out of the industry”, but Skandia platform specialist Jeremy Mugridge said he took heart from the number who see the legislation as having a favourable outcome.
“As an industry we have the opportunity to use the RDR to make things clearer and more transparent for consumers which will go a long way to improving the trust they have in financial services,” Mugridge said.
