Head of marketing Malcolm Murray says advisers who refuse to take the exams required under the RDR have three options – take a strategic management role and recruit graduates to give financial advice, join a direct salesforce or become an introducer.
He says: “They can carry on running the firm but the principals will take on a more strategic role and bolster new blood by recruiting graduates.
“They can become an introducer and for that the acquirer of the lead will carry on paying the introducer a percentage of the recurring income that their client book generates plus a share of initial fees for any new clients they might introduce. Or, thirdly, they will join a direct salesforce and they will keep receiving commission from the provider and be a representative.”
Murray believes the most popular option will be to become an introducer.