Skandia International, the offshore business of Old Mutual Wealth, also found advisers in Hong Kong are feeling “uncertain” about how the recent changes to the sale of Investment Linked Assurance Schemes (ILAS) will impact their customers and businesses.
Earlier this year, significant changes were made to how advisers sell ILAS products to consumers, including the introduction full commission disclosure.
According to Skandia, a “staggering” 38% of advisers said they are unsure how these changes would impact their business, with exactly a third saying it will have a negative impact.
However, in Singapore, where the local regulator is currently conducting the Financial Advisory Industry Review (FAIR) – sometimes touted as “Singapore’s Retail Distribution Review”, 50% of advisers believe the outcome will be positive for their business. Although 44% said it would be negative.
In both Hong Kong and Singapore advisers were more upbeat about the impact the regulatory changes would have on consumers, with 47% of those in Hong Kong saying they would be positive and in Singapore, 61% also believing it will be positive.
Phil Oxenham, head of proposition marketing at Skandia International, said: “Regulatory change in any jurisdiction creates challenges and uncertainty for advisers. It’s important that financial advisers are provided with enough information and the changes are communicated effectively in order for them to make the required amendments in a productive manner and position them with their clients.
“This appears to have been more forthcoming in Singapore than in Hong Kong which has left an uncertain regulatory landscape, mirrored in the results of this survey.
“As a result, we’ve been working with financial advisers in Hong Kong and Singapore offering support via practice management tools and services to help them through the transition and position their businesses for success in the new regulatory landscape.”
