25% of IFAs: RDR to transform market for the better
25% of IFAs: RDR to transform market for the better
Despite 71% of IFAs stating they would be adopting a full IFA model post RDR, results showed only a quarter of IFAs believe that the new regulation will transform the market for the better.
With many investors becoming orphaned once RDR is enforced, 38% of IFAS believe their overall client base will decrease by 15% on average. Just one in five IFAs feel that the reforms introduced will have a positive result for the end investor and only 4% believe that RDR will help encourage a new generation to save and invest. So clearly even with the deadline looming, IFAs are sceptical about the benefits the reform will provide to their business, as well as their end client.
However more positively, there are also those IFAs who believe that despite the market shrinking, the quality of advice and professionalism will improve, presenting a real opportunity for those left in the industry. As well as this, over half of IFAs (59%) believe that the revenue generated per client will be the same or more, with one in five believing it will increase, as they target more High Net Worth Individuals.
So, even with the deadline fast approaching, there are clearly still challenges ahead for IFAs to prepare themselves for RDR. Results highlighted that over half of IFAs have still not communicated any changes to the charging model to their client base, and IFAs have faced challenges to achieve the relevant qualifications and keeping up to date with all policy changes.
However changes are happening and charging clients a fee as a percentage of their assets or investments appears to be the most popular charging structure. So, despite the RDR sceptics, those who do embrace the changes and reposition themselves successfully have a real opportunity for a positive future;- helping to raise the standard of advice and increase consumer trust within the industry.
Opinium Research manages an online research community of IFAs and regularly conducts research testing marketing materials, concept and product research, brand and reputation tracking and general surveys amongst IFAs on the state of their industry.
