Adviser charging
The industry is already well on the way to the new model of adviser charging that the RDR will make mandatory. The inclusion of restricted advice within the rules is to be welcomed, as is the separation of product and advice charges by vertically integrated firms as it will bring consistency to the market.
Independent and restricted advice
The distinction between ‘independent’ and ‘restricted’ advice provides plenty of opportunity for financial advisers to clearly differentiate their offerings. There will always be value associated with the independent label, but the ‘restricted’ label gives scope to offer different types of services to meet different client requirements.
Ensuring that customers understand the service they are agreeing to – both in relation to the initial recommendation and ongoing service requirements – is crucial to making different forms of advice work. Those advisers that embrace the new division of advice and take segmentation one step further can really turn it to their advantage by creating an efficient business, providing services that clients both need and want.
Platform technology
The post-RDR world should be an ideal environment in which to be an adviser, but in line with this, providers will have to step up to the mark in order to offer appropriate and quality support.
Platform providers need to offer support, and work on getting the technology right. The platform model can deliver the diversification and flexibility advisers need to meet the needs of a segmented post-RDR client base. It can provide the solid foundation clients’ financial plans require and allow for these plans to be easily implemented and managed.
Our two minute video explains some of the benefits of using a platform: