No time to sit and wait
I will get straight to the point we now have only 13 months left until the implementation of the RDR, so how far along the transformation route are you?
Do you have positive answers to the following five questions?
- I have a vision for my postRDR business
- I have RDR goals and objectives and review these regularly
- I understand segmentation and have segmented my client bank
- I have identified client propositions for each of my client segments
- My business processes are in place and I know how I will be remunerated for my work post-RDR.
If you can say yes to all these, then you have probably developed your client proposition and are clear about how you will be rewarded for this.
Or have you taken time to reflect on the recent announcements from the Treasury select committee and the FSA? Has your RDR work stalled?
I am lucky enough to speak to some wonderful advisory firms face to face and via social media. Most are at varying stages of the business transition journey but quite rightly many of them are seeking guidance. Change is never easy but it is made even harder when uncertainty questions the very need for change. I would argue that the key steps in the RDR transition journey should be adopted by every advisory business, even if we did not have the catalyst of RDR.
Think about it, it makes commercial sense for any business to have the following:
- A clear direction of where you want to go
- An understanding of the clients who make you money and, more importantly, who cost you time and money
- A defined suite of the services that are designed for the needs wants and desires of their clients and prospects
- A remuneration strategy that maximises revenue while delivering client value
- Processes and technology in place that underpins the overall business vision and long term strategy.
Yes we have to be aware of all the latest developments with RDR but I would urge you to continue on your own path to transition and do not stall or delay your efforts.
Change can be profitable
Aegon believes that the regulator should continue to push ahead with the RDR changes at least for package product new business from the end of 2012.
Many of you are well advanced in your RDR preparations and this will bring benefits to consumers through greater clarity and enhanced professionalism. However, a robust RDR transition program will also deliver other valuable benefits to every business.
With just 13 months to go, if you want to ensure you will be ready for RDR, visit our RDR proposition zone. We can help you with segmentation, proposition development and choosing the right method of remuneration for the work you do. Visit www.aegonse.co.uk /businessbrain
John Joe McGinley, Business consultancy manager, Aegon