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NMBA and Apfa set out firms’ RDR readiness

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The latest findings on RDR readiness suggests almost one in five advisers will not continue to give advice from next year, and that advisers are struggling to communicate the RDR changes to clients.

The New Model Business Academy, SimplyBiz’s training arm, polled 1,322 advisers and found 81 per cent of respondents plan to carry on giving retail investment advice post-RDR. Among the remainder, 4 per cent of advisers have said they are leaving the industry.

The research also found less than two thirds of those polled expect to have fully embedded adviser charging in their business by January.

Some 75 per cent of advisers expected to serve fewer clients from next year, with 73 per cent predicting the cost of both advice and products will increase.

Other findings from the survey were that 72 per cent expect to have attained their level four qualification with no gaps, and 4 per cent expect to have gap-fill still to complete.

A further 72 per cent expect to have fully developed their client proposition and/or agreement, and 69 per cent expect to have obtained their statement of professional standing.

NMBA chief executive Lee Travis says: “If 19 per cent of advisers today will not be advising on retail investments from 2013, it really highlights the impact that the RDR is having.

“The majority of advisers have attained the appropriate qualifications and have filled the necessary gaps, with the bulk expected to have their SPS and client propositions all ready in time.  However there is still a sizable percentage who will not, representing a significant number of advisers facing deauthorisation.”

He adds: “Whilst it is encouraging that only 4 per cent expect to leave financial services, it seems the RDR may force many advisers to continue on a reduced permissions basis, temporarily or permanently.”

Separate research from the Association of Professional Financial Advisers has found that 41 per cent of the 275 advisers polled believe communicating the RDR to clients is one of the main challenges to their RDR preparations.

30 per cent said implementing adviser charging was the biggest challenge, while 42 per cent of advisers believed their firm was RDR ready.

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