Industry experts have sought to reassure IFAs there are still substantial opportunities in the current advice market despite the short-term challenges presented by the RDR.
At a Money Marketing round table on adviser-charging last week Ernst &Young director of financial services Malcolm Kerr acknowledged that the number of investment advisers will reduce as a result of the RDR but the need for advice is increasing, particularly in the at-retirement market.
Kerr said: “We have a situation where demand is going up, and supply is going down, which is a healthy situation for the people who are left behind.
“There is an opportunity at this point where people who are five years away from retirement are looking for advice. They have no idea about what level of income their assets are going to generate and need someone to help and manage their assets for potentially 20 or 30 years. That is a very attractive area which is worth going for.”
Fidelity International head of UK fund partners Ed Dymott said the at-retirement market represents “a boom market for advisers”. He said: “We should not underestimate the short-term challenges that adviser-charging presents but in the longer term, demand for advice is going to grow. If advisers get their value proposition right, then the opportunities are significant. There are also so many opportunities to differentiate yourself as an adviser.”
Personal Finance Society head of technical Rebecca Prestage said many advisers are putting retainers in place to ensure it is economic for them to look after the interests of clients into and through the decumulation phase.