View more on these topics

Leader

The reaction to the Treasury select committee’s recommendation to delay the RDR by a year has been vehement and rarely for the financial services industry largely unanimous. Among others, the CII and the ABI have said that any delay to the deadline would increase uncertainty and damage momentum.

Another consideration not mentioned by the CII and the ABI is that it will drag the process out even longer. Many advisers are well prepared for two years of pain while they re-engineer their businesses and sit exams. Postponing it for another year may lessen the impact in the short term but it is another year of flux and transition, worrying about exams and being distracted from the real business of client service.

It also delays the improvement of your business. Recent CII research showed that 33 per cent of those who do not currently take financial advice would consider doing so post-RDR. The RDR presents a business opportunity, a way to make advisory businesses more profitable and sustainable. As such, why wait?

The point is moot anyway as the FSA has said it remains committed to the existing timetable. Undoubtedly, there will be advisers who do not hit the deadline but among them will be those who have postponed and postponed in expectation that a change of government or a change of heart by the regulator would save them.

In this month’s Adviser Business, the focus is on knowing your business. Steve Billingham talks about how to deliver outstanding client service, focusing on reconnecting and gathering information on clients, so you know them better than anyone else. He believes this is a great insurance policy against them going elsewhere. Julie Hepworth at Perspective agrees that a key part of client retention is soliciting feedback from your clients and acting on it.

John Joe McKinley of Aegon talks about how you can analyse which clients are costing you money and decide how to deal with them. There are reasons to keep unprofitable clients but advisers need to be clear what they are and therefore why they are doing it. He also talks about how retainers can help deal with this.

Again, the key to this is knowing your business. You cannot decide where your areas of strength lie without a full analysis of your business and client base. Knowledge is power.

Recommended

North on sick leave

Legal & General Investment Management director and head of global high yield David North has gone on extended sick leave. He manages the £2bn highincome and £528m diversified absolute return funds.

2

Supervision boost won’t cut FSCS costs

FSA chief executive Hector Sants says significant investment into supervision of firms would be unlikely to reduce the costs of the Financial Services Compensation Scheme by a similar amount. At an FSA conference on the Financial Conduct Authority this week, Sants explained many firms are currently visited once every four years, meaning some failings go […]

Skandia takes aggressive approach to Asia

Skandia Investment Group’s Asian equity fund takes a more aggressive approach than other Asian funds in Skandia’s range. It aims for growth by investing in 60 to 100 Asian stocks excluding Japan.

LSE terminates TMX merger

The London Stock Exchange is to terminate its agreed merger with Canada’s TMX Group. While the majority of both LSE and TMX shareholders voted in favour of the merger, which was first announced in February, the two-third approval threshold for TMX shareholders was not met. As such the merger will no longer proceed. A stock […]

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment