Advisers confident for RDR but concerned by profits

IFAs are positive about post- RDR developments but uneasy about the bottom line, an Aviva survey has revealed.

The Adviser Barometer found the majority of respondents (89%) expect to remain in business beyond the review's deadline of 1 January 2013. Only 4% anticipate leaving the market.

Director of distribution development at Aviva, Dean Lamble attributed confidence to, "the rules [which] have mostly landed" providing clarity. According to the research 69% of advisers are making changes to their business models in preparation for RDR. For instance 67% are segmenting their client base while 47% are increasing investment in their business. Over one third (36%) are looking to recruit more advisers.

However, advisers are increasingly concerned about profitability, with a rise from 31% (May 2011) to 40% (September 2011) as the time draws near.

In addition, more advisers are worried about financial outcomes of the reforms than economic uncertainty. Only 29% reported anxieties about upheaval in the Eurozone, a slight fall from May, when a third of advisers raised concerns.

The research also focused on how advisers are using technology to streamline their business. Almost one third (32%) were planning to increase their use of technology as a result of the RDR. Three quarters (75%) of advisers claimed to use between one and three platforms on a regular basis.

Lamble said: The Retail Distribution Review is one of the biggest changes we have seen in the financial services arena for many years. Therefore the signs that intermediaries are not just meeting the challenge but also using it as an opportunity to future-proof their livelihoods is great news."