The retail distribution review will drive down the cost of advice and IFAs will have to find industrialised processes to serve the mass market as a result, says independent consultant John Cowan.
At the Money Marketing RDR Invitational, Cowan said: “The RDR is a back door that is all about driving down the cost of advice. Once the public sees the cost of advice, the vast majority will not pay for it and so we, the IFA community, are going to have to invent ways to serve wealthy clients through fee-charging while looking to industrial-ised processes to find ways of serving the mass market.”
Halton Insurance Service director Mike Fry says that developing these extra services will be difficult for directly authorised IFAs. He says: “I am not part of a network so I would have to set up these processes myself and it would be hard work to find the time or I would have to buy in the services and that would be another expense on top of everything else.”