Advisers concerned about profitability post-RDR

Yuan Phoon

November 24, 2011

Nearly nine out of 10 were confident that they would remain in business on 1 January 2013 after RDR and just 4% said they are likely to leave the market.

Over half said the reliability of systems was their main technology challenge.

The research also revealed that more than two thirds of advisers were making changes to their business model in advance of the RDR with 47% increasing investment in their business and 36% looking to recruit more advisers.

Dean Lamble, director of distribution development at Aviva, said: “The Retail Distribution Review is one of the biggest changes we have seen in the financial services arena for many years.

“Therefore, the signs that intermediaries are not just meeting the challenge but also using it to as an opportunity to future-proof their livelihoods is great news.

“The commitment to recruiting new staff and investing in aspects of their businesses shows that despite the current economic climate, they have faith in the potential of the market and consumers’ desire for good quality financial advice.

“Indeed, we recognise that we need to work closely with financial advisers to help them adapt and develop their businesses.”

Sign up to our daily email