BlackRock has launched the BlackRock Transitioning Tool to assist advisers who are preparing to move to a fee-based business model ahead of the RDR regime, due to come into effect at the end of 2012.
The online tool is designed to help advisers find solutions to some of the key challenges as they move to a fee-based model. It works in six easy steps, enabling them to:
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Determine the cost of servicing clients;
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Establish a client servicing proposition;
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Understand the potential benefits of client segmentation;
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Model potential revenues;
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Forecast how revenues might evolve over the next three years;
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Consider the factors that influence how a practice is valued.
To further assist with some of the key challenges of transitioning to a fee-based model, BlackRock has built a newly-created Adviser Centre which contains a suite of educational materials to help advisers evolve their business and support the conversations they have with their clients. Its Best Practice Insights brings together forthright opinions from 30 of the UK's leading financial advisers about what has helped them to succeed. Additionally, the Centre also hosts a number of guides and case studies to help advisers share insights from their community. The Adviser Centre is located within the intermediaries section of BlackRock's website at www.blackrock.co.uk
Tony Stenning, Head of UK Retail at BlackRock, comments, "Advisers who are currently in the process of transitioning their business may be uncertain about three key areas: the level of fees they should charge; defining their value proposition to clients; and how their revenues will be affected. The BlackRock Transitioning Tool helps them address these concerns head on.
"We have drawn on the experience of some fee-based advisers from both the UK and the US to build this tool. Based on these insights, we aim for our support to be practical, simple to use and interactive. The tool will help advisers to test out different fee and servicing scenarios in order to get a clear picture of what will be most suitable for their own businesses going forward."
In July, BlackRock launched its first range of funds specifically developed to help advisers and investors adapt to RDR. The BlackRock Consensus Funds act like funds of index funds to provide simple, cost-effective and diversified investments, and are independently risk-rated to help advisers match clients with suitable portfolios.
According to recent research BlackRock undertook with NMG Consulting into 278 UK-based financial advisers, 36 per cent of advisers intend to increase use of index tracker funds while 33 per cent plan to increase use of multi-asset passive fund of funds post-RDR.
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