The overwhelming majority of advisers using platforms are still aiming to remain independent after the implementation of the retail distribution review (RDR), with only a handful looking to retire, it has been suggested.
A survey of platform users conducted by Defaqto found 87% of advisers intend to remain independent.
Only 7% believe they will be 'restricted' advisers from 1 January next year, while less than 2% saying they will retire.
It also showed the progress being made towards weaning IFAs off commission, with just 10% of the 350 advisers surveyed now relying on commission for all their remuneration, although 70% of those who work on a mix of commission and fees still rely primarily on the former.
Meanwhile, 42% of advisers indicated they outsource some or all of their investment process, with 21% of these using discretionary managers and 26% using multi-managers.
In a paper published today, Defaqto highlighted the five key challenges advisers will face this year, and the issues they will need to resolve:
- As a business, whether to offer restricted advice, independent advice or both
- Transitioning to a fee charging business as provider commission becomes a thing of the past
- Whether or not to outsource investment administration by embracing platform technology
- Whether or not to outsource investment decision making by ‘employing' an investment expert such as a multi-manager or discretionary manager
- Communicating their post-RDR service proposition to clients
Fraser Donaldson, Defaqto's insight analyst for funds, said: "The challenges facing the advisory community as they prepare for RDR implementation are numerous - and certainly the next twelve months could be challenging for advisers as they seek to transition their businesses in time for 2013."
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Via The Exchange
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First phase of digital investment