Advisers say the complexity of placing business in the post-RDR world has added an extra two hours to the length of time it takes to process new business.
Firms say issues such as weighing up the merits of clean versus existing share classes, battling providers to get answers to queries about adviser charging facilitation and whether trail commission will continue, and dealing with new provider terms and conditions are making life harder for advisers.
Almary Green managing director Carl Lamb says: “We believe the level of research, checking and double checking we have to carry out to process new business is probably adding an extra two hours to the whole process.
“When dealing with providers, you can ask the same question to three people and get three different answers. Everything takes so much longer because you are having to double check everything because we do not believe what we are being told by the providers the first time around. We should not have to do that.”
Thameside Wealth director Tom Kean agrees. He says: “It is a bit of a nightmare at the moment. What seems to be catching people out is the sheer insanity of some of the issues at stake, such as providers only paying commission if no advice is given. Providers are interpreting the rules in isolation and never in exactly the same way, so we all end up having different processes for each provider. It is painful.”
Attain Wealth Management managing director Gordon Crothers says: “The whole process is getting more drawn out, more time consuming and more costly for advisers to deal with.”
Apfa policy director Chris Hannant says: “It is to be expected that there will be a bit of friction as part of the RDR transition. Those providers who have got their act together, with a reliable service and a consistent message from their frontline staff, will earn more respect and will do better as a result.”