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ANNOUNCEMENT: Read more financial articles on our partner site, click here to read more.

One fifth of clients not commercially viable rdr

By Mark Battersby, 24 Nov 14

A significant number of financial advisers in the UK have shed more than 20% of their clients because they are no longer commercially viable in the post RDR world, research by online platform Rplan has revealed.

Of the 137 professional financial advisers canvassed during September and October 2014, 13% said they had stopped offering services as a direct consequence of the implementation of the Retail Distribution Review.

The research, conducted by PollRight, also found that 56% of the advisers were planning to stop servicing some existing client accounts over the next 12 months.

Stuart Dyer, chief investment officer at Rplan said: “Investors are clearly finding it more difficult to secure financial advice and given that our findings reveal 56% of advisers are planning to stop servicing some existing client accounts over the next 12 months, the advice gap is likely to become bigger.”

Other key findings were that 33% of advisers have established or increased a minimum portfolio size for clients, and 26% of all the sample required a minimum investment of at least £30,000. See table below.

Minimum investment required post RDR (% of advisers)

  • Under £10,000    ( 2%)
  • Between £10,001 and £30,000    (4%)
  • Between £30,001 and £50,000    (10%)
  • Over £50,000     (16%)

To read about how some advisers are expected to fail to complete the transition from commission to fee-based remuneration in time for the FCA’s deadline because of fears over client and revenue loss, click here.

Tags: RDR | UK Adviser

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