Defaqto has outlined the five most important challenges for advisers in the run-up to the RDR.
All of these challenges will need to be implemented by advisers by the end of this year.
The first challenge is whether to offer restricted, independent advice or both. According to Defaqto research, 87 per cent of advisers intend to remain independent while only seven per cent say they will be offering restricted advice.
Second is transitioning to fee-charging business and informing clients how much advice will cost and what they can expect in return.
Third and fourth relate to outsourcing, whether to outsource investment administration by embracing platform technology and whether to outsource investment decision making by employing a multi-manager or a discretionary manager.
Currently 42 per cent of advisers have indicated they are keen to outsource some or all of their investment proposition.
Finally, advisers need to communicate the extent of their post-RDR proposition to their 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 business in time for 2013.”
Defaqto will be hosting a webinar for advisers on these challenges from 3-4pm on 23 January.
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