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Research suggests only 3% of IFAs to quit by RDR

Aviva sign 480

Just 3 per cent of advisers are considering leaving the industry before the RDR deadline, research from Aviva suggests.

Aviva has been tracking adviser attitudes to the RDR since January 2009.

At that time 37 per cent of advisers polled by the insurer said they planned to leave the industry before December 31 this year.

By December 2010 this had dropped to 10 per cent, and by June 2011 the proportion of advisers intending to leave the industry had fallen to 7 per cent.

The latest research from Aviva, based on a survey of 355 advisers, shows that as of last month just 3.4 per cent are expecting to leave the industry by the end of the year.

Aviva intermediary director Andy Beswick says: “We have not yet seen advisers exit the market to the levels previously predicted. This is good news as it means professional advice will remain accessible to more customers.

“Getting past the RDR deadline is only the start. The industry is adapting but there is an opportunity to go further and embrace change.”

Aviva RDR graph 480

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Comments

There are 29 comments at the moment, we would love to hear your opinion too.

  1. Did they ask the ones that have already left?

  2. Note the wording ‘leave the industry…’.

    I predict a widespread outbreak of ‘guidance’ come 2013 and a corresponding reduction in advice.

  3. What Aviva have not mentioned is some advisers associated with Banks are being offered going down the Protection route rather than Investment. I would like to know the adviser count after this process.

  4. So, there are those that have already left, those that will become Mortgage & GI advisers, but won’t leave the industry and not too mention that this survey only collated information from 355 advisers; what’s that, about 1% of the number of FA’s currently working?

    Useless information! The RDR will be massively detrimental to consumers and part of that reason will be the lack of advice available.

    Thanks goodness, consumers have the MAS to fall back on!!

  5. I agree with the first comment, and anyway 3.4% of 355 appears to be 12.07 so how can this be?.

    Just goes to show that 106% of people at Aviva don’t understand percentages…..

  6. I am very sceptical of all this so called ‘research’ and coming from Aviva of all people I guess we should place even less reliance on it.
    How big was the sample? What was the age grouping? How many directly authorised? What was the geographical dispersion and how did this look on the figures? And so forth.
    Anyway what is said to a ‘researcher’ and what may actually happen are in all probability two very different things. The real picture will be evident this time next year and I guess we will all have to wait till then. I think many who say they will continue in the industry may well find that they are just not making the satisfactory transition to fees. The difficulties will of course be compounded by our politicians – who are vying with each other to destroy pensions and the will of the public to save at all. Nest will also be a detriment. And then we have the regulator who while expecting us to jump over evermore regulatory hurdles, at the same time expects us to work on ever more slender margins.
    Some say that all this will be an opportunity for those remaining – we shall see!

  7. Tend to agree with the others on this post. The 3% does not reflect my experiences speaking to other IFA’s (past since 2009 and present) so a big question mark over the Aviva survey..

    Since 2009 there has also been a lot of ‘clarifying’ from the regulators which did help calm fears. However I have also spoke to many compliance departments and advisers who are expecting more ‘clarifying’ post RDR. Right now the whole market is leading to some odd distortions that will need fixing sooner rather than later.

  8. What a load of tosh!

  9. Weeza all doomed 18th July 2012 at 3:47 pm

    All this “research”… tut tut. If we believe it all there will be anywhere from 35% exodus down 3%. its very easy. Get the FSA to publish a list of all IFA numbers (not firms, not networks – actual bods on the ground) who are authorised to give investment advice. Around the Middle of March getthe same list and see how many less there are. Then do it again in June, Oct and Dec 2013. Then we will see the truth, the whole truth and nothing but the truth.

  10. I also suspect a lot have not made a decision today but will wait until next year and depending on the hassle may decide to go in a few months into the new regime.

    A head count at the end of 2014 might interesting.

  11. Richard wright 18th July 2012 at 4:08 pm

    UTTER UTTER RUBBISH
    This is purely an Insurace company, who are the great beneficiaries of RDR, putting there own spin on It!! Watch Avivas Profits soar come next year when they no longer have to pay commission!!

  12. ….I’m off

  13. This is utter rubbish! I know, for a fact amongst the IFAs I know that the figure is about 30% and may go higher when the reality dawns!

  14. Larry in London 18th July 2012 at 4:33 pm

    They didn’t ask us — We’re all off to another country. Seriously. We’ve got passports for our new country, the lot. Goodbye UK.

    This ‘research’ is complete rubbish.

    Love and kisses

    Larry

  15. Utter rubbish as usual from Aviva
    Over 9000 IFAS have left over the past three years
    Mostl older experienced and trusted!
    Both this government and the last have a common purpose to see us gone…come the revolution brothers and sisters!!!

  16. 100% of the addvisers at this firm will quit. We are all Qualified re RDR but have decided to pursue other avenues without the associated regulatory costs, not to mention the bloody mindedness of the interfering incompetent regulator, nor the unquantifiable FSCS fees we may be asked to fund.

  17. We had 4 advisers here before RDR was announced and 2 have already left or retired.

  18. @weeza
    Good idea. Maybe the AIFA could do this with an FOI request……….
    that’s if it’s not too much trouble………..
    But the that would need a bit of finessing between Protection only IFAs and full monty IFAs

  19. Soren Lorenson 18th July 2012 at 5:11 pm

    I suspect if Aviva conducts its survey on 31st December 2012 they will find that 100% of IFA’s intend to continue under RDR.

  20. AVIVA Life marketing director David Barral has said the firm predicts by 2013 IFA numbers will fall to 10,000 in total as advisers fail to comply with RDR changes, leaving middle-market consumers unserviced. Aviva then embarked upon a programe to grow its tied in-house channel to target 2.7 million ‘orphan’ clients whom were originally IFA clients. Ok so AVIVA have embarked upon huge costs in contradiction with what they now seem to be saying? Strange that they seem to hold such contradictory views!

  21. Funny, Keith Jayne – but they must have rounded from 3.38%.

    Neil

  22. I really don’t know what AVIVA are trying to say as most of the research that I have seen shows much more than this have already left.

    3% of those that are currently here or 3% of what is left that will have to leave?

    Certainly not reflected in money marketing’s survey
    Perhaps they are trying to get on good terms with the FSA?

  23. That estimation seems a bit low – perhaps they mean 3% initially then 0.5% per annum of the remaining advisers thereafter. Hmm – has a nice ring to it. And…..Mr Jayne – 106% of people at Aviva don’t understand percentages? Bit harsh -you forgot to knock off the bid/offer spread.
    PS: When we having that pint?

  24. The survey is totally flawed, I am leaving AFTER the 31st December on the 1st January so I am not counted in thier figures? Also too small a sample and who believes surveys anyway??

  25. Nonsense. We have 6 RIs – 4 are leaving before the year end.

    Talking to others at roadshows etc there are still a lot out there who are also leaving.

  26. Paul Standerwick 19th July 2012 at 10:33 am

    I dont really understand this article, sounds like a load of rubbish to me. I am an IFA and i dont know anyone who Aviva have consulted…..

  27. Aviva…interesting…what do Aviva know about…..well anything?

  28. Most industries work on a basis of mutual trust. Car manufacturers do not make wheels, they buy them in and trust that the supplier maintains the standard shown in the samples. And so on.
    Read the comments on these pages and it is clear there is little trust or respect in the financial sector. Implicit in the statments is a total lack of trust in what Aviva say. I’m not sure I have ever seen anything that indicates any level of trust in teh Regulator. The manner in which providers operate doesn’t really engender respect or trust. I don’t need to say anything banks.
    I’ll exclude the Press if only on the basis they trust no-one, not even themselves.
    And consumers are unsure of whom to trust.
    When people entrust you with their money they do so on trust. How can they when there is no trust within the industry?

  29. Dominic Thomas 20th July 2012 at 5:17 pm

    Utterly pointless “research” 355 people asked. Who commissions this utter rubbish.

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