Aifa director general Stephen Gay says banks will find it more difficult than IFAs to comply with the RDR.
Speaking today at the Tenet Annual Business Conference in Ascot, Gay said the news that Barclays is closing its financial planning arm, revealed this week by Money Marketing, suggests other banks may also struggle with the RDR.
He said: “I do think there is an opportunity for IFAs, by virtue of their superior customer proposition and natural business flexibility, over the banks.
“The Barclays announcement yesterday was very interesting in that regard because it shows that banks will struggle with the RDR far more than IFAs will. IFAs should consider if they are able to demonstrate value for money for customers, then there is every reason to be optimistic.”
Gay said Aifa will try to reduce the number of IFAs that leave the industry post-RDR.
He said: “Of course some IFAs are going to decide that the pressures of the RDR will cause them to shut up shop. What we want to do is ensure that as few as possible make that decision by doing everything we can to ensure they are able to reach the standards required and to be able to offer a business that is sustainable in the future.”
Money Marketing also this week revealed research from Ernst & Young which suggested it would not be financially viable for banks to offer advice post-RDR.