Intrinsic has added its voice to a growing consensus among advisory networks that the ‘restricted’ advice model will be a key model within the industry following the Retail Distribution Review, predicting strong growth in the months leading up to implementation.
Richard Freeman, chief executive of the firm, told FTAdviser that the Intrinsic model will continue to support single-tie, multi-tie, and independent advice models, but that the multi-tie route - which he said will closely resemble the new definition of ‘restricted’ advice - is where the strongest growth will be in the years ahead.
In preparation for the RDR, Mr Freeman said that all of Intrinsic’s more than 750 financial planners have either achieved diploma status or are enrolled on the company’s training programme.
Discussing his expectations for the year ahead, Mr Freeman said that he expected 2012 to be a “pivotal year” for the industry, not simply because of the looming RDR deadline but also because of the wider market volatility and uncertainty.
He said: “There’s no doubt that 2012 will be a pivotal year in our industry. In economic terms, we are not expecting any great improvement in 2011.”
Mr Freeman added that, while areas such as mortgage lending are likely to remain level, investment markets will continue to be volatile and this will put pressure on advisory businesses.
He said: “With that in mind, success in 2012 will be determined by financial resilience and the right attitude - which businesses approach the new adviser environment with optimism and with the ability to seize the opportunities ahead.”