With implementation of the Retail Distribution Review (RDR) now less than a year away, the next twelve months are likely to be very challenging for advisers.
In the first of a series of papers aimed at helping advisers prepare for 2013, independent financial research company Defaqto has outlined five key challenges advisers will need to tackle over the coming year:
-As a business, whether to offer restricted advice, independent advice or both - Defaqto's 2012 survey of platform users has found that 87% of advisers intend to remain independent post-2012 while 7% plan to offer restricted advice.
-Transitioning to a fee charging business and articulating what their advice will cost and what clients can expect in return - Defaqto points out that this is also an opportunity for advisers to demonstrate the professionalism and quality of service they offer in order to justify their fees, and to differentiate themselves from their competitors on this basis
-Whether or not to outsource investment administration by embracing platform technology
-Whether or not to outsource investment decision making by employing an investment partner, such as a multi-manager or discretionary manager - Defaqto's latest platform survey found that 42% of advisers currently outsource some or all of their investment process
-Communicating their post-RDR service proposition to clients
Fraser Donaldson, Defaqto's Insight Analyst for Funds, said:
"The challenges facing the advisory community as they prepare for RDR implementation are numerous - and certainly the next twelve months could be challenging for advisers as they seek to transition their businesses in time for 2013.
"We have pinpointed five key challenges that advisers will need to resolve by the end of this year, all of which relate to the type of service proposition the advisory firm is going to operate once the RDR's rules come into effect."
The full article is available on the newly launched RDR section of Defaqto's website, which brings together a range of resources to assist advisers as they prepare for RDR implementation: www.defaqto.com/adviser/rdr.
Defaqto's adviser research tool - Engage - provides whole of market financial product and fund information to support advisers' product research and selection; Engage also helps advisers with partner selection and due diligence, and generates reports for compliance and regulatory purposes.
Defaqto also provides bespoke consultancy services for advisers, including assistance on fund and product panel selection and outsourced platform and DFM due diligence, to help them select appropriate partners for their business.
|
