Tenet survey reveals significant swing in adviser opinion
Issued: 07 July 2010
A Tenet survey of its clients has revealed a significant swing in the way advisers are looking towards RDR and beyond
A Tenet survey of more than 1,000 of its clients has revealed a significant swing in the way advisers are looking towards RDR and beyond.
Twelve months ago, 12 per cent said they were planning to exit the industry. Now that figure has halved, to just six per cent.
When factoring-in that a certain percentage of IFAs will be retiring by 2013, the result acquires even greater magnitude and suggests a lot of the uncertainty surrounding RDR implementation is dissipating.
According to Tenet's distribution & development director, Keith Richards, there are two principal reasons for this measurable shift in opinion. "The FSA's DP10/2 paper, published in March of this year, cleared up a lot of the confusion about exactly what will be required to continue as an intermediary post-RDR," he commented.
"Even with the recent change of government, RDR will still be implemented and whether advisers agree or not, this greater clarity in certain key areas has made it necessary for them to make decisions about their future.
"Secondly, and more specifically to Tenet, our 'RDR-ready' campaign launched earlier this year has greatly increased awareness and given advisers access to a wide range of support on qualification and business transformation.
"Between them, these measures have resulted in a much-heightened focus on planning and the rewards of remaining in the profession."
The Tenet survey tackled a number of pertinent issues, among them the question of what course advisers envisaged they would take post-RDR.
More than two thirds (69 per cent), stated they would continue to offer independent advice. Only three per cent were contemplating operating on a restricted basis, with 22 per cent saying they would consider both.
A much larger percentage of 90 per cent confirmed they would continue conducting investment business after 2012, with just four per cent switching to a non-investment portfolio.
But when asked to name their main concern surrounding RDR the vote was not quite so decisive: with qualifications (47 per cent), topping the list, closely followed by remuneration (40 per cent). Prudential rules, with just 13 per cent, completed the verdict.
"There is still a high level of confusion in the market about what is actually required, but issues such as adviser charging are becoming less of a stumbling block for many firms as they get to grips with the various mechanisms available," continued Richards.
"Major challenges remain however and the costs of full RDR compliance must not be underestimated. At Tenet we are encouraging our clients to focus their attention on aspects they can influence, rather than worrying about those they can't."
