IFAs outline short-term concerns

One in four IFAs sees the transition to a fee-based model, treating customers fairly (TCF), and working with legislation as the biggest issues for them in the near future, a survey suggests.

The research comes from a survey by Winterthur, which the provider conducted during its 'A Wealth of High Net Worth Expertise' road show in May.

David Thompson, Winterthur managing director, says the research highlights the “view that successful provider platforms are going to be increasingly about propositions that understand client requirements and work in partnership with IFAs to produce innovative solutions.”

The research also highlights the rise of the ‘new wealthy’. Half of the road show attendees said such clients are increasing and now make up to a third of their customer base.

David Thompson, managing director of Winterthur, says over the last couple of years the industry has seen a significant increase in this type of customer.

He says the new wealthy customer is income rich but time poor. The average new wealthy customer is in his mid-forties and is often a self-made entrepreneur or a successful corporate executive.

“The traditional view of the high-net customer is elderly, has inherited wealth and is retired," he says.

"We see within our own customer profile a new customer developing – the new wealthy who is still in a professional career and doesn’t have the time and the inclination to perform their own research.

"This is a new type of customer that seems to be emerging and a customer advisers should be focusing their businesses on."

Additionally more than a quarter of IFAs surveyed intend to outsource up to 50% of their fund recommendations to a fund of funds platform over the next two years. A fifth intends to outsource up to 100% of the fund management decisions.

Almost 70% of IFAs expect some, if limited, use for ASPs in the future despite the proposed changes to the current tax regime. Nearly 17% see it as a useful planning tool. The research also shows IFAs see using e-commerce effectively and new technology as key issues over the next two years.

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Jennifer Bollen
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E-mail: Jennifer.bollen@incisivemedia.com

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