RDR triggering rise in chartered status: CII
Three-quarters of advisers are ready for the retail distribution review deadline and many are becoming chartered to get ahead, figures from the Association of IFAs and the Chartered Insurance Institute have revealed.
A survey conducted for Aifa by consultancy NMG found that 75 per cent of advisers had reviewed their business model and were ready for RDR.
With just under 250 days to go, 12 per cent of firms had reviewed their structures but had not implemented the necessary changes, 7 per cent had not reviewed their model and 6 per cent had no idea whether they were ready for RDR or not.
Chris Hannant, policy director for Aifa, said: “It’s clear that a number of firms are yet to get up to speed with the requirements. For these firms it’s important they determine where their business stands and what they need to do to be ready in time.”
Many firms have already started to distance themselves from the rest of the pack by attaining chartered status ahead of the RDR deadline on 1 January 2013.
According to the CII, the number of member firms which have attained chartered status has more than doubled since 2008, when there were just 191. In the run-up to RDR the figure has increased to 403, as of the end of March.
The data shows the number of chartered financial planners has also increased, from 1542 to 2839 in the same period.
Perhaps unsuprisingly, London boasts the most chartered firms with 52, followed by Manchester with 46. The capital also has the most chartered individuals at 443, followed by Yorkshire with 243.
Allan Maxwell, director of Glasgow-based Corporate Benefits Consulting, said: “Having chartered status is important because, as financial advisers, we want to raise the profile of the profession in the eyes of the public. We want to be seen on par with accountants and lawyers as a profession.
“Clients of accountants and lawyers know they are professional but there has never been anything concrete in the past for advisers and chartered status provides this.”
He said the public needed to be educated to understand what the status means and the benefits of speaking to someone who is chartered.
Mr Maxwell added: “It is good to be able to show clients that you want to do a good job and want to provide them with the highest quality of advice.
“The first stage in terms of awareness is to get more people chartered. Then the public must be educated on the relevance of the status.”