In its white paper, Future Distribution, the web portal says adviser firms now need to commit extensive time and research to determine the most appropriate and cost-efficient distribution channels necessary to move their business forward.
The paper also encourages advisers to recognise that a “ruthless approach may also be necessary, with some client segments possibly having to be ‘farmed-out’ or dropped altogether”.
The paper says: “For those client groups which do not appear to offer any profitable longer term revenue, it will also be necessary to consider the disposal options – selling, pushing or perhaps leaving this group to natural attrition – if the costs of this are not prohibitive given shorter-term servicing needs.”
According to the paper, 75.2 per cent of advisers expect face to face advice to continue by 2012, while 20 per cent foresee a multi-channel distribution strategy.
Over 51 per cent expect business to be focusing on high net worth individuals by 2012, with 41 per cent will be focusing on a multi-strategy by that time.
The report also highlights the potential to include mortgage-related insurances, general insurance and protection products within the new RDR proposals.
It said: “Many industry commentators would suggest, perhaps wisely, that it would be foolish to believe that longer term, these channels will escaped unscathed.”