The head of portfolio strategy for RBC Wealth Management said that, one year on from the implementation regime, it has been a good thing “overall”.
He said: “There is a concern there are fewer available advisers in aggregate, and the cost of advice may have risen. It is also notable that some people at the lower end of the scale may find it harder to get good advice.
“However, the effort put into training for RDR, along with the increased transparency, lower cost structures, removal of incentives and better client engagement has been worth it. In those terms, it is hard to argue against the spirit of the RDR.”
While RBC’s division sits above the wealth space covered by most financial advisers, Mr King said be believes there may be more “segmentation bleed” across the medium to higher net-worth clients since RDR, but if businesses stick to what they’re good at, clients will see and value what their advisers are doing for them, regardless of wealth levels.
Roger Brosch, chief executive of national advisory firm Foster Denovo, said the industry will see the true impact of RDR this year. He said: “2014 will see benefit realisation for those firms that adopted new practices successfully. Those who didn’t adapt will be exposed – whether from regulatory sanction, or from a client perspective.”