Providers are still wrestling with legacy business and choosing the right distribution channels ahead of RDR implementation.
Speaking at a Perspective Financial Group roundtable on the RDR, Scottish Widows head of distribution development Robert Kerr said providers face a difficult task in assessing which legacy products will facilitate top-ups and adviser charging.
Kerr said: “Our RDR project has been a bit like nailing jelly to the wall at times. The biggest challenge providers face is going to be how much of their legacy book they add flexible charging structures to. That will be different for every provider and it will not be an easy task.”
Kerr said Scottish Widows has to consider the treatment of 268 legacy products.
He added: “Providers will wrestle with that for a few months to come. It certainly will not all be there on R-Day.”
JP Morgan head of UK marketing Keith Evins said providers are having to second-guess how many advisers will survive post-RDR, whether they will be investment specialists or outsource, and assess the dominance of other distribution channels.
Evins said: “Longer term, what is vexing us as a provider and maybe some of our competitors is just how we structure our business to align it to the market post-RDR. We and others are looking at other distribution channels that have not really been prevalent in the market for some time. It is the business alignment issues that are going to affect us beyond 2013.”