It could take five years for IFA firms to overhaul their charging model, leaving them little time to comply with the forthcoming RDR, warns Positive Solutions.
Advisers are facing a barrage of new rules, including the need to make changes to the way clients pay for advice by 2012.
Positive Solutions' chief executive, Jim Reeve, says he knows from experience it can take up to five years for an IFA firm to change its charging model.
"It can't be rushed and requires effective and regular dialogue with clients so that they understand and support the change," he says.
Positive Solutions has called on the FSA to commit to rolling out a nationwide ‘hearts and minds' awareness campaign outlining how consumers will benefit from the proposed shake-up of the financial advice market.
"This is something that can't wait until 2012 - IFAs need to start remodelling their businesses now to meet the deadline so the campaign needs to swing into action quickly too," says Reeve
The FSA has regularly emphasised its statutory objective of promoting public understanding of the financial system, he says.
"The RDR proposals impose profound changes on the market that could leave consumers confused and sceptical unless the time is taken to explain why they are necessary and beneficial."
Reeve says Positive Solutions backs the clear split between independent and restricted advice, but he believes the FSA will need to work in partnership with advisers on a range of major issues such as changes to the way clients pay for advice.
"Independent financial advisers have repeatedly been shown to deliver by far the most trusted form of financial advice, but there is a clear risk some will struggle unless the FSA creates a demand by informing and educating consumers about how advisers add value and why they are being asked to pay a fee," he warns.
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