Monday, 16 July 2012 12:25
Study predicts employer pensions advice will grow most after RDR
Advice on employer pensions is expected to rise post-RDR while tax wrapped investment advice will significantly fall, according to Defaqto.
The firm questioned over 150 advisers on the types of business they advised on and what they expected to advise on post-RDR.
Employer pensions make up six per cent of advisers' workload but this is expected to more than double to 16 per cent post-RDR.
As well as the impact of the RDR, the increase is likely due to the introduction of auto-enrolment in October, meaning more businesses are seeking financial advice to comply with new regulations.
Meanwhile tax wrapped investments make up 21 per cent of advisers' business but this is expected to fall to 13 per cent post-RDR. However, non-tax wrapped investments saw an increase, rising from 16 per cent to 20 per cent.
Other falls include retirement income from 14 per cent to six per cent and individual pensions from 23 per cent to 21 per cent.
Fraser Donaldson, Defaqto's insight analyst for funds, said: "One of the key challenges facing advisers as they prepare for RDR implementation is deciding on the service proposition they plan to offer from 2013.
"Interestingly, our research has identified a potential shift in the type of business that advisers expect to focus on in the new distribution era, which suggests that change may be on the horizon."
The firm questioned over 150 advisers on the types of business they advised on and what they expected to advise on post-RDR.
Employer pensions make up six per cent of advisers' workload but this is expected to more than double to 16 per cent post-RDR.
As well as the impact of the RDR, the increase is likely due to the introduction of auto-enrolment in October, meaning more businesses are seeking financial advice to comply with new regulations.
Meanwhile tax wrapped investments make up 21 per cent of advisers' business but this is expected to fall to 13 per cent post-RDR. However, non-tax wrapped investments saw an increase, rising from 16 per cent to 20 per cent.
Other falls include retirement income from 14 per cent to six per cent and individual pensions from 23 per cent to 21 per cent.
Fraser Donaldson, Defaqto's insight analyst for funds, said: "One of the key challenges facing advisers as they prepare for RDR implementation is deciding on the service proposition they plan to offer from 2013.
"Interestingly, our research has identified a potential shift in the type of business that advisers expect to focus on in the new distribution era, which suggests that change may be on the horizon."
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