Business variables for wealth management firms. Source: Pershing
Pershing has found wealth managers are being forced to re-evaluate their proposition post-RDR to demonstrate value to clients.
Its report 'Through the Looking Glass: An executive perspective of UK wealth management in an RDR world' questioned over 340 wealth managers.
Some 39 per cent felt the most value delivered to clients came through personal relationships while 17 per cent felt their qualifications were of value.
Some 46 per cent felt managing existing client relationships was critically important to the future of their business. This would be done via client segmentation, clearly defining their offering, improved client communication and improved relationship management.
Some 84 per cent considered improving client communication as very important to managing existing business.
{desktop}{/desktop}{mobile}{/mobile}
Regarding pricing, 91 per cent said competitive pricing was a necessity and 69 per cent said fee transparency made client management easier.
Managing compliance costs and headcount in support functions were significant priorities for firms in order to reduce costs.
Kevin Bonar, chief executive of Pershing, said respondents were "brutally aware" that they would need to adapt to survive.
He said: "The UK wealth management industry is working through some of the most dramatic regulatory challenges in a generation and is addressing its need to adapt.
"Right now, for many firms just surviving is key, longer tem its understandable that firms are concerned with developing the most effective value proposition they can offer clients."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
