84% of IFAs will remain independent post-RDR, says Scottish Widows
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Eighty-four per cent of IFAs intend to continue offering whole of market advice following the 2012 RDR deadline, according to research by Scottish Widows.
The study shows 5 per cent of IFAs intend to offer restricted advice after the RDR proposals have been implemented.
Scottish Widows says there is a lack of clear differentiation between the requirements for professional qualification for providing whole of market and restricted advice.
It adds that this has led many advisers to conclude that anyone who completes QCF level four and is willing to implement the adviser charge would remain independent.
According to the study, 47 per cent of IFAs see the need for additional research facilities to cover the expanded investment scope, with 76 per cent expecting additional research services to come from independent research firms such as Defaqto.
Scottish Widows intermediaries director Simon Massey says: “Our research shows that while a number of intermediary firms will opt for the restricted route the vast majority see independence as core to the value they offer their clients.
“They’ll want to demonstrate that independence clearly to their clients and avoid locking themselves into one or a very small number of providers.”
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Readers' comments (2)
John Blackmore | 3 Dec 2009 2:26 pm
A very optimistic view. Even so if 30% leave and 84% of those who remain continue as IFAs that still the marketplace with less than 60% of the current number. allowing for people saying one thing now and doing another later don't be surprised to see the final figure go below 50%
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Phil Castle | 3 Dec 2009 6:05 pm
Statstics eh. How many of the 84% have actually READ and responded to the RDR discussion and feedback papers? I know very few have responded tp RDR papers which tends to suggest most have only read comments on the RDR her on MM or elsewhere, listened to their network of the PFS. There is a lot of spin about the RDR, but if you do not read the actual FSA papers, you will miss a lot of what you may be required to do in order to maintain the Independant label and many may find they have to say they are restricted simply because they don't provide a service in a particualr area (ETFs and structured products/derivatives comes to mind)
My intention may well be to remain Independant, but even I question how many of us will be able to meet the new definitions........
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