Nationals accused of RDR scare tactics
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Networks and nationals are using the retail distribution review as a scare tactic to get IFAs to join them, says True Potential managing partner David Harrison (pictured).
He describes recent commentary from networks and national IFAs as “propaganda” and he argues that many firms are using the planned reforms to their own ends.
He believes the RDR will play into the hands of smaller, client-focused IFAs if they approach it in the right way.
He says: “There has been far too much propaganda. Far too many people have tried to frighten IFAs. They have been giving them all sorts of incorrect adv-ice and opinion based on their own need to try to get people to join networks, multi-ties and large IFAs.
“The RDR itself is not problematic. It is a great thing for the industry, the client and the small IFA. There is a big savings gap that people have to close and it is only the IFA who can help do that.
“The public want independent advice. That is why 70 per cent of all new sales are through the independent sector.”
Harrison says the big issue in the current market is profit- ability. He says: “Those large networks and nationals funded currently by product provider ownership are not profitable so how will they survive post-RDR?”
He says True Potential last month recorded its best-ever month, signing up 40 IFA firms, bringing the total number of firms to 321.
Harrison acknowledges that examinations could prove challenging for some but he believes the application of knowledge is key rather than purely focusing on technical knowledge.
True Potential has just launched an iPhone application for its platform, which Harrison says is a first in the market.
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Readers' comments (3)
Neil F Liversidge | 13 Nov 2009 2:35 pm
Of course nationals and networks are trying to use the RDR to scare advisors into joining them. Likewise the 'matchmakers' that have sprung up. I've had umpteen calls in the last year, all telling me that I need to sell now because I'll never get a better price. Who do they think they are kidding?
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Anonymous | 13 Nov 2009 3:31 pm
He has a cheek. As the founder of Positive Solutions and up until he started TP 2 years or so ago was advocating exactly what he is now condeming. Talk about hypocrisy.
The facts on being directly authorised are clear and unless you have the time and infrastructure it is a big issue as it can be costly. Now is certainly not the time to sell, but it is the time to have the infrastructure in place to deal with the changes.
As to RDR unless the adviser firms get something in place they will have major problems and there is nothing that TP offers that can assist in the implications.
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Incompetent Regulators Awards | 13 Nov 2009 4:54 pm
Why would anyone want to join a network when you have 2 sets of incompetent organisations when dealing with the FSA. E.g. the FSA and the Network. If you go directly to the FSA you only have to deal with one set of incompetentce e.g. the FSA!
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