Transact chief executive Ian Taylor says the RDR has triggered a distribution “war” with providers scrambling to buy adviser firms.
Speaking at the Institute of Financial Planning annual conference in Newport last week, Taylor said: “It is like a war, we have this ancient empire of product providers going into war with the ancient empire of product distributors. We are reaching the end of the cold war of words in Canary Wharf. January is when the shooting begins.”
He believes life offices face the most dramatic change as a result of the RDR.
Taylor said: “The life companies are more used to buying and controlling distribution than the asset managers and the platforms. So as we move into this brave new world, they are not going to give up easily.
“There is going to be a provider scramble to buy distribution. Everyone will say there is not, but in fact it has probably already started. These are the opening shots of the hot war. They will be buying up IFA firms left right and centre.”
Jacksons Wealth Management managing director Pete Matthew says: “It would be a fairly short-sighted adviser that would align themselves with a life office. The traditional life office is dying and I cannot see that reversing.”