More than one-third of advisers do not believe their clients understand how they will be paying for their service next year, while a further 29% require help in explaining the impact of RDR, according to Defaqto.
Morningstar has taken the lead on resolving another ‘unintended consequence’ of RDR, one that you may or may not have considered.
Charging clients a percentage of assets held is the preferred route to post-RDR remuneration, rather than being paid a fixed fee or on an hourly-rate basis, according to the latest survey of IFAs.
It’s already been quite a week for research looking at the likely ‘advice gap’ that will be created by RDR and it seems the public is still reluctant to accept paying a fee to advisers.
The majority of UK consumers are unwilling to pay for financial advice despite a general sense of pessimism clouding their investment decisions, research by BlackRock has found.
In the boom times financial services firms seemed to think offering a one-stop shop to fulfil a client’s every need was the best way to ensure a steady flow of customers and thus a constant stream of revenue.
Wells Fargo Asset Management has launched a ‘Z’ share class for 11 sub-funds of its Luxembourg-domiciled Wells Fargo Worldwide Fund in preparation for RDR.
Up to 5.5m people could drop into the financial advice gap following the implementation of RDR, according to research by Deloitte.
More than three-quarters of CISI members have chosen to take and pass level 6 or 7 qualifications ahead of RDR, rather than stick to the minimum level 4 requirement.
Do they not get it? RDR is happening, and it is happening soon. Yet day after day product providers, research firms and any Tom, Dick or Harry who thinks he is worth his salt sends out a “survey” or “report” full of scaremongering statistics on its impact.
Barclays has revealed plans for its RDR-ready share classes to be launched ahead of 31 December across its multi-asset passive and active solutions, single asset funds and within its discretionary offerings via platforms.
With RDR weeks away, the emphasis for change is far too heavily focused on lowering costs rather than anything related to offering improved, more transparent product and advisory propositions.
