Prudential believes many IFAs will defer making a decision about whether to offer independent or restricted advice until well after the RDR deadline has passed.
Distribution change director Russell Warwick believes advisers will look to retain their independence immediately after December 31 and then assess whether holding on to independence is commercially viable.
He says: “We will not know what it is like until we are there. It is likely that the default position for most IFAs on January 1, 2013 will be to stay independent, with decisions about whether they offer an independent or restricted advice proposition not made until later next year or even 2014.”
Warwick argues that the reality of a big industry initiative as the RDR means advisers will focus on other priorities such as getting qualifications.
He says: “That is a sensible approach for advisers. They should not be forced into making rash decisions.”
Evolve Financial Planning director Jason Witcombe says: “Many IFA firms are likely to carry out a strategic review of maintaining their independence a year down the line.”