RDR: more advisers will focus on mortgages
The Aviva Adviser Barometer showed that 66% of advisers had already achieved QCF4 status, 18% expected to do so by the end of the year and 13% expected to achieve their qualifications in 2013.
Keith Richards, group distribution and development director of Tenet, said: “At Tenet we think there will an increased focus on mortgage and non-investment advice as a direct result of RDR.
“This may just be in the interim period while advisers become qualified or for some it may be a long term decision if they decide to delicense as a result of the new regulations.”
Richards added: “And as the mortgage market is relatively flat at the moment it is likely that advisers may focus on their existing clients who already have suitable mortgages and use that relationship to cross sell related products.”
And data from Aviva’s survey also showed that the top adviser concern for the post RDR market was remaining profitable (44%).
Richards said that in the short t term advisers are concerned about the negative impact that adviser charging is going to have their cash flow.
He said: “Tenet predicts that generalist advisers, those who advise on all aspects of financial advice, will focus more on mortgage sales during this time to bolster their income while fee charging beds into the investment industry.”