Advisers expect rise in corporate pensions business post-RDR
Regulatory upheaval will result in smaller proportion of tax wrapped investments and retirement income.
Employer pensions will likely be the area of business with the greatest increase in significance for advisers post-Retail Distribution Review, while the proportional volume of tax-wrapped investments and retirement income is likely to decrease.
According to financial research company Defaqto, the percentage of business devoted to employer pensions will grow from 6 to 16 per cent after RDR, while that focused on tax wrapped investments and retirement income will fall from 21 to 13 per cent and from 14 to 6 per cent respectively.
Results of the survey of 161 advisers also suggested that non-tax wrapped investment business will grow from 16 to 20 per cent.
Fraser Donaldson, insight analyst for funds at Defaqto, said: “One of the key challenges facing advisers as they prepare for RDR implementation is deciding on the service proposition they plan to offer from 2013.
“Interestingly, our research has identified a potential shift in the type of businesss that advisers expect to focus on in the new distribution era, which suggests that change may be on the horizon.”