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Daily Insurance Industry News
Sunday 21st of January 2018
July 27, 2011

Advisers square up to RDR demands

by Gill Montia

Story link: Advisers square up to RDR demands

Advisers square up to RDR demands

Fewer financial advisers are planning to leave the industry than at any time over the last two-and-a-half years, according to the latest intermediary research from Aviva.

Despite forthcoming market changes including the Retail Distribution Review (RDR) and capital adequacy, only 7% of advisers expect to shut up shop, compared to 10% in December 2010 and 36% in January 2009.

Aviva’s research also indicates that advisory firms are making good progress in preparing for the RDR, with over two-thirds of respondent firms changing their business models and three-quarters introducing different service levels.

In addition, more firms plan to offer independent advice and more advisers are working towards qualifications, as the focus of concern shifts towards the financial reality of running a business post-RDR.

Qualifications are now less of a concern than worries about remaining profitable (47%), adopting adviser charging (44%) and applying VAT to the new charging model (40%).

Aviva director of distribution, Dean Lamble, comments: “It’s encouraging to see growing adviser effort and confidence as the RDR deadline moves ever closer.”

Last week, the Association of British Insurers came out against delaying the implementation of the RDR until 2014, as recommended in a new report from the Treasury Select Committee.

The Committee is fearful of a “substantial exodus” of experienced advisers from the market if the RDR is implemented in January 2013, as planned.

 

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