FSA head of investment intermediaries Linda Woodall was reported as saying: “We are encouraged to see a large number of advisers plan to provide advice to people with smaller pots to invest. It is important that a range of services will be available for consumers once the changes to financial advice come in.”
Really? What is a large number of advisers, how do they know? Is this a case of the FSA being told in a survey what they want to hear rather than what they need to hear?
The FSA’s findings follow research published by Deloitte earlier this month, which estimated up to 5.5 million customers would stop using, or lack access to advisers post-RDR as a result of adviser charging.
Now, if the FSA assumptions are correct it will be in large part due to the in-built sense of customer care that advisers have for their clients.
But, if they are wrong and client requests to their adviser cannot be dealt with on a pro bono basis, and they will not pay a fee, what happens?
Well to quote Captain Blackadder ”A large crisis requires a large plan”.
But I think there is not one.
To parody what Blackadder might have said, “Come on George, with thousands having lost their jobs in this industry in the last year or two, who’s going to miss a small IFA next year?
And we are trying to find out what the true landscape of RDR shifting sands is.
So far, a few ‘hot of the press’ insights are showing that:
- Strength of client relationship is almost as important as AUM when segmenting clients
- Most plan to offer differentiated services to meet diverse client needs
- Preference for adviser charging through the product vs. fee paid direct by client
- Move to restricted may be higher than the FSA claim
Do you agree?
We have extended our survey to run until Wednesday 5th December. So please take the survey today, it will only take up 10 minutes of your valuable time.
Results from a survey like this could cost a firm around £5,000 and advisers often would not get sight of it. However, to recognise the importance of your input, these will be shared in December with you for FREE – the most important person in this exercise.
The results will allow comparison of your RDR problems, experiences, successes, failures and solutions with your peers that will no doubt help you fine-tune your newly formed proposition.
Thank you in advance for your assistance in completing this survey. Simply click on this link to begin.