Fewer IFAs expect to leave because of RDR
Advisers are beginning to embrace the retail distribution review and shape up for the changes it will bring, data from Aviva has shown.
The protection provider’s latest adviser barometer showed the number of IFAs who expected to leave the industry ahead of 2013 has dropped from 37 per cent, as predicted by the barometer in 2009, to 3.4 per cent this year.
The barometer indicates this huge decline shows advisers were embracing the changes rather than leaving the industry.
Andy Beswick, intermediary director for Aviva, said: “We haven’t yet seen advisers exit the market to the levels previously predicted, which is good news as it means professional financial advice will remain more accessible to more customers.”
The research also suggested that many advisers were considering how they would put their own charging structures in place with more than half stating they would use provider facilitation for client payment.
Aviva suggested that only 16 per cent were unaware of how they will carry out adviser charging, showing a high majority of IFAs were advanced in their preparations for RDR.
Although full execution of capital adequacy requirements will not occur until 2015, the barometer suggested just 9 per cent of advisers did not know about these requirements, potentially showing how IFAs are beginning to get fit for the future.
Mr Beswick said: “The industry is adapting and there is a real opportunity to go one step further and embrace the changes that are approaching.”
Julie Bayley, financial planner and adviser for Cumbria-based Eden Financial Planning, said many advisers in her area had given up and left the industry this year, implying the figures were dependent on location.
She said: “Many IFAs in rural areas have retired this year due to the alterations RDR is bringing to the industry.”
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