84% of advisers to remain independent post-RDR, says JP Morgan
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One in seven IFAs are planning to leave the industry as a result of the retail distribution review but 84 per cent will remain independent, research by JP Morgan Asset Management reveals.
The poll found that 14 per cent will exit the market, 84 per cent will remain independent and 2 per cent plan to become tied advisers. Of those polled, 14 per cent feel they are either not equipped or prepared to meet the RDR requirements.
JPMAM head of retail distribution Jasper Berens says: “Adviser numbers will undoubtedly fall post-RDR and this will have a knock on effect on both the remaining advisers and investors.”
Berens says for IFAs looking to sell their business, then now is the time to start preparing their business for sale.
He says: “In the short term those advisers planning on leaving the industry need to the think about the best time to exit the business. It’s a tough market in which to sell your business at present but advisers shouldn’t be fooled into thinking that valuations will go up in the next few years.
“In fact, in the rush to sell before 2012 the market could become flooded.”
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Readers' comments (4)
paolo standerwick | 3 Feb 2010 11:32 am
This poll only reflects a tiny snap shot in time. E.G. when we really know what RDR will do or not do then we will see what happens.
If RDR goes the full hog, I think we could say goodbye to at leat 50%.
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Nick | 3 Feb 2010 12:09 pm
We'll know the real figures soon as the FSA is conducting its own survey...assuming the publish it!
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Evan Owen | 3 Feb 2010 1:35 pm
I believe that my own surveys are more comprehensive and representative, the results do not even remotely compare with those of J P Morgan.
Nor does my assessment of the situation relating to the 'Buy Sell' market for which I exclusively market a very useful handbook prepared by a lawyer with decades of experience in the merger and acquisition of financial intermediary firms.
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SIMON MANSELL | 3 Feb 2010 7:53 pm
This is because 84% of IFA's don't understand what the FSA has in store for them under the independent label! RDR is the end of independent advice!
Can you really advise on the whole market as you will be obliged to do out of the myriad of options? Could you really defend the advice given out of the myriad of options? Post RDR the title independent will a magnet for claims management groups and will proliferate your liability but not your profit. Remember, you will be defending your actions with both hands tied behind your back, without the protection of the courts, rules of evidence, right of appeal, longstop etc etc you will be a sitting target, a consumerist punch bag and yes last but not least an independent financial adviser!
Restricted adviser status will be the only safe way to trade.
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