Less than 5% of independent financial advisers (IFAs) will leave the industry after retail distribution review (RDR) implementation, although an increasing number are worried about profitability, a survey suggests.
Of the 249 IFAs questioned in September as part of Aviva's Adviser Barometer, 89% said they expected to be in business on 1 January 2013.
In a previous survey in June by the company, 7% said they plan to stop trading, compared to 10% in December 2010 and 36% in January 2009.
However, the proportion worried about profitability now stands at 40%, up from 31% in May.
Despite this, 47% were increasing investment in their business, while 36% were looking to recruit more advisers.
Dean Lamble (pictured), director of distribution development at Aviva, said: "The commitment to recruiting new staff and investing in aspects of their businesses shows that despite the current economic climate, they have faith in the potential of the market and consumers' desire for good quality financial advice.
"The form this advice will take depends on the type of consumer and many advisers are looking at segmentation of their client bases to address specific needs."
The survey also demonstrated the increasing use of platforms, with 32% intending to increase their investment in technology systems.
However, they had a number of concerns in this area, with the majority worried about the reliability of systems.
|Technology challenge facing advisers||% of advisers who agree|
|Reliability of systems||57%|
|Having to re-key information||49%|
|Remembering logins and passwords||40%|
|Using different platforms for different products||38%|
|Lack of technical support||26%|
|Initial cost of new technology||22%|
|Ongoing maintenance costs||18%|
Lamble added: "The use of technology will be integral to the development of robust IFA businesses in a post-RDR world and we are keen to understand how we can help advisers with this challenge."
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation