Financial advisers ready for RDR

Best_practice_sign_410Calls for a delay to the implementation of financial advice rules are from 'old fashioned' life offices that rely on commissions, while other investment advisers are well prepared for the changes, says Skandia UK, an investment platform operator.

Skandia, which is owned by Old Mutual, surveyed 1,700 advisers about the retail distribution review (RDR) and found that 66% believe that they will be ready by the end of this year, while a further 32% are confident that their business model will be RDR compliant ahead of the 1 January 2013 deadline.

Only 2% of advisers surveyed are planning to leave the industry before the deadline.

Although it acknowledges that some significant issues still need to be resolved, such as legacy commission and platform rebates, Skandia believes that the industry has had ample time to ready itself.

Nick Dixon, marketing director at Skandia, said: “Calls for a delay to the RDR seem to be coming from old fashioned life offices who rely on high commissions to drive sales.

“We are encouraged by the FSA’s commitment to the 1 January 2013 deadline and believe this is essential to strengthen consumer confidence in the industry and deliver long-term growth.”

©2011 funds europe