Research found that 27 per cent of advisers say the regulatory changes will drive IFAs out of business, while 10 per cent say they will reduce turnover. Another 10 per cent say the changes will undermine the affordability of independent advice for consumers.
Watson Wyatt says a third of advisers believe the RDR and cap ad changes will have no major impact, while 13 per cent say they will make financial advisers more professional and increase consumer confidence in the sector.
The research found that only a quarter of advisers questioned have read the consultation paper on the prudential rules for personal investment firms and only a third have read the RDR feedback statement.
Watson Wyatt senior consultant in insurance and financial services Sarah Luheshi says: “There is an opportunity here for product providers to engage with advisers about these important regulatory changes.
“Our research finds that providers already have an important role with regard to regulatory change. It suggests that keeping advisers informed of ongoing regulatory developments and about what they should be doing in practical terms through well targeted advice and support would be warmly welcomed.”