Just in the nick of time

If we rewind back 18 month ago, Financial Adviser was littered with stories outlining the industry’s fear that a massive chunk of the IFA community would vanish – mainly because not enough advisers would be able to gain the vital level 4 qualification in time.

In fact, Robin Stoakley, Schroders’ head of UK intermediary business, predicted in October 2010 that 30 per cent of the industry could be forced out of the market due to the retail distribution review. And IFA Kim Barrett, from Barretts Financial Solutions, spread more doom and gloom when he said the exodus could be as high as 80 per cent.

However, the tides have changed.

Tenet and the New Model Business Academy this week confirmed that 94 per cent of their advisers intend to continue post-RDR, with the majority either already qualified or close to completion.

This was echoed by Openwork which also confirmed that around 90 per cent of its investment and pension advisers intend to get to level 4.

Patrick Connolly, head of communications for AWD Chase de Vere, also said that all of its existing advisers are at level 4 or are working towards it. This is with the exception of two advisers who it knows will be retiring during the course of 2012.

Some are even exceeding the level 4. In fact, Institute of Financial Planning claim at least 50 per cent have Level 6.

Things may be looking a lot sunnier for advisers. But they can not sit on their laurels if they want to be a success in the post-RDR world.

Many still need to rework their business model to be more RDR-friendly.

This includes weaning themselves off commissions among other things.

But if so many can pull up their sock and get qualified then other RDR requirements are still obtainable - even if it all happens just in the nick of time.