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."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected