20th September 2011

Aviva: Growing adviser confidence in the face of RDR change

Fewer advisers plan to leave the industry than at any time over last two-and-a-half years

Advisers’ confidence is growing, according to latest intermediary research from Aviva. It shows fewer advisers say they will leave the industry, due to forthcoming market changes including the retail distribution review (RDR) and capital adequacy, than at any time over the last two-and-a-half years. Just 7% now plan to stop trading, compared to 10% in December 2010 and 36% in January 2009.

Aviva’s research also shows that advisory firms are making good progress getting their businesses ready for RDR. More than two-thirds of advisers (69%) are changing their business models, with three-quarters (74%) introducing different service levels for different types of client.

More firms (71%) plan to offer independent advice, up from 65% in December 2010, with fewer firms planning to offer restricted advice or a multi-advice model.

As more advisers work towards their qualifications, the focus of their concerns is shifting towards the financial reality of running a business post-RDR. Qualifications are now less of a concern (39%) than worries about remaining profitable (47%), adopting adviser charging (44%) and applying VAT to the new charging model (40%).

Dean Lamble, director of distribution development at Aviva said: “It’s encouraging to see growing adviser effort and confidence as the RDR deadline moves ever closer. We’ve seen membership of the Aviva Adviser Academy increase to over 10,000 this year as advisers study hard for the new qualification to meet the RDR requirement. The increase in confidence is down to all the hard work advisers are putting in, getting to grips with RDR requirements and preparing their businesses to trade after 2012.

“At Aviva we constantly review what intermediaries are telling us through our research, so we can take steps to put technical support and practical guidance in place for advisers.  Our websites, Aviva for Advisers and the Adviser Academy, together with our business transition programme are all ways in which we are supporting advisers through the significant changes that RDR is bringing to our industry.”

Read the full article here.

RDR