Only adviser firms "masquerading" under an independent banner while colluding with life and pension providers have anything to fear from the RDR, says Nucleus Financial Group's David Ferguson.
The chief executive of IFA-owned wrap platform Nucleus says gloomy interpretations of the FSA’s proposals - particularly towards smaller firms - overlook the fact most quality UK IFAs are small businesses which for years have provided high quality ongoing advice.
He says the RDR only poses a threat to small firms which claim independence but collude with life and pensions providers to distribute their products.
He argues there can be no true independence in selling products for a small group of providers in return for commission, particularly when that commission is often leveraged in return for volume.
Ferguson adds the RDR simply provides a potential framework in which the market may complete its evolution towards re-polarisation – something he says has been happening for the last three or four years due to client demand.
“Almost all of the quality IFA firms in the UK are small businesses who have been providing very high quality ongoing advice for a long time,” he says.
“These well-run firms have nothing to fear whatsoever from the RDR and can actually expect operational and corporate benefits should the proposals come to pass.
“The small firms that may be most concerned are those who have been masquerading under an independent banner while colluding with the life and pensions sector to distribute its products.
“The days of capital rich life offices forcing their wares on an unsuspecting population through a sales-led ‘advisory’ market are numbered.”
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