Article date: 20 January 2011
Financial advisers are getting to grips with the Retail Distribution Review (RDR), according to Aviva’s latest intermediary research. With two years to go until RDR takes effect, more than three quarters (76%) of advisers believe they will still be in business on 1 January 2013. This figure has been climbing steadily over the last two years, and the number of advisers who believe they are unlikely to be trading in 2013 has dropped to just 10%. Two years ago, 50% thought they would still be in business, and 21% believed they would drop out.
Advisers are also making progress with preparing for RDR:
- The percentage working towards gaining further qualifications is up to 69% (from 57% in January 2009).
- Advisers adopting adviser charging is up to 52% (from 28% in October 2009).
- The percentage of advisers adopting platforms stands at 28% (up from 26% in January 2009).
And when asked which trading model they intend to operate, two-thirds of advisers (65%) plan to offer independent advice, 15% say they will offer a multi-advice model, and 6% intend to offer restricted advice. Just 15% of advisers have not yet decided which model to adopt, or intend to leave the market.
Simon Badley, director of intermediary at Aviva, said: “It’s really encouraging to see increasing numbers of financial advisers getting to grips with their RDR preparations, and giving consideration to important decisions such as which trading model they plan to adopt.
“At Aviva we want to see intermediaries survive and thrive over the coming years. We’re putting time, effort and resources into supporting advisers with their RDR preparations, including our popular FinancialAdviserAcademy, our Future Adviser Programme and our Adviser Briefings, which give intermediaries the information they need to be fully informed about future changes in our industry and help them get ready to trade successfully in future.”
If you are a journalist and would like further information, please contact:
Jess Geoghegan: Aviva Press Office: 01904 684128: firstname.lastname@example.org
David Gwyer: Aviva Press Office: 01904 452659: email@example.com
Research is based on a survey of 259 financial advisers in December 2010.
Notes to editors:
Aviva is one of the world's largest insurance groups* with 53 million customers worldwide and 46,000 employees.
Aviva’s main activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion*.
In the UK, Aviva takes care of its 19.2 million customers by helping them look after their future, protecting what’s important – from their health to their homes, their cars to their business – and saving for the future.
Aviva has a 10.5%** share of the UK life and pensions market and insures one in six homes and one in ten cars in the UK. It is also one of the oldest UK insurers, with a heritage stretching back more than 300 years.
RAC, which is owned by Aviva, provides breakdown and insurance services for individuals and businesses and has around seven million customers.
Aviva is carbon neutral worldwide, and is ranked in the top 10% of socially responsible companies globally by the Dow Jones Sustainability World Index. In the UK, Aviva invested £3.8 million into local communities in 2009. Read our corporate responsibility report at www.aviva.com/cr.
Aviva’s global Street to School programme is working in partnership with Railway Children in the UK to get children living on the streets back intoeducation and everyday life. Find out more at www.aviva.co.uk/street-to-school.
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*based on gross worldwide premiums at 31 December 2009
**Source: ABI data released August 2010