Despite talk surrounding the move to restricted advice in the post-Retail Distribution Review world, as few as 13 per cent of advisers previously deemed independent will have changed their status by the first anniversary of implementation.
According to a survey of 491 advisers by platform provider Skandia, approximately 90 per cent of advisers have remained indendent post-RDR, while 8 per cent have shifted to restricted and just over 2 per cent offer a hybrid model comprising of both propositions.
Although some commentators predicted a gradual shift towards restricted, the survey suggested only 5 per cent of respondents intend to become become restricted in the next 12 months. In contrast, 83 per cent said they are not looking to change their offering in the coming year and almost 12 per cent said they are unsure.
The research points to a disparate approach being adopted by larger advice firms compared to smaller peers, with a majority of the largest firms dropping their independent status while the broader market shows only a marginal swing towards restricted.
In January FTAdviser reported that eight out of the 10 biggest advice firms are using the restricted model post-RDR, based on to research from VouchedFor.co.uk. Prior to the implementation of RDR eight out of ten of these firms described themselves as independent.
Of the 10 largest companies offering advice as defined by Financial Adviser’s annual Top 100 FAs list, only Hargreaves Lansdown and AWD Chase de Vere have said they will continue to keep their direct advice offering independent.
The survey results also suggested as many as three out of four advisers could become chartered in the near future. While only 16 per cent of respondents said they are currently chartered, 27 per cent are studying towards it and 33 per cent are thinking about it.
According to a survey of 550 advisers conducted by Skandia in September 2012, just 22 per cent said they have no intention of studying towards chartered status.
Mike Barrett, platform marketing manager at Skandia, said: “We are only just into the new post-RDR world, and advisers are no doubt still evolving their business models.
“Further changes are inevitable, and we may see a gradual move to restricted, however, the majority will still remain independent.”
Mr Barrett added: “Advisers’ attitude towards studying for chartered status can only be a good thing for the industry as a whole, and will help give the profession the recognition and status it deserves.”
