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Poll puts banks as the big winners from RDR

Only one in three advisers are in favour of the retail distribution review proposals, with fee-based advisers significantly more positive about its introduction than commission-based advisers.

A YouGov/Money Marketing survey conducted among 582 advisers, finds that the strength of support for the RDR is strongly correlated with the amount of adviser income that is generated from fees.

Of the advisers who are fee-based, 69 per cent are in favour of the proposals compared with 35 per cent of the total sample.

A total of 21 per cent of advisers think the RDR will see savings fall while 66 per cent believe it will have no impact on consumer savings.

Customer-agreed remuneration is regarded gener- ally as a neutral or positive move for customers, with 43 per cent of advisers believing it will increase clarity for customers and 44 per cent thinking it will make no difference.

But among those advisers who earn nearly all their income from fees, 74 per cent believe there will be an improvement in clarity.

One in four advisers think that the reforms coming out of the RDR will result in more consumers paying for financial advice.

High-street banks emerge as the clear winner when the poll asked if the RDR would benefit certain groups within the financial and consumer communities, with 58 per cent saying banks would benefit.

Private banks, new-style advisers and life offices are seen as the next biggest beneficiaries from the RDR.

The biggest losers are seen to be small general financial advisers, with only 10 per cent of respondents saying this category will benefit.

The majority of respondents, 54 per cent, believe that consumers in general will not benefit from the RDR.

Highclere Financial Services partner Alan Lakey says: “It is very easy to forget the consumer in all this. The RDR is not based on treating customers fairly because if it is going to confine customers to high-street banks, then it is treating them unfairly.”

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