RDR will "fuel" consolidation, Conforto claims

That is the claim made by fee-based independent financial adviser Conforto Financial Management following publication of the FSA's feedback statement on the RDR earlier today (25 November).

Conforto, which has grown to have £125m assets under management through two acquisitions in the past four months, said further consolidation would occur as a result of the increased pressures on, and qualifications required for, firms that choose the proposed independent advice route over that of sales advice.

Managing director Andy Sutton said: "Many advisory firms will need to make decisions for their future and this will inevitably fuel the ongoing consolidation of the financial advisory market.

"Segmenting the financial advice market is a fundamental step and the key proposal from the FSA creating a distinction between those firms who focus on providing holistic financial advice and those focused on selling financial products.

"Consumers will benefit from increased confidence in the market, a more transparent understanding of what they can expect and a better, more consistent financial advice process."