Article date: 7 September 2010
- But more advisers are getting to grips with qualification requirements
Aviva research shows a big increase in the number of advisers who regard adopting new charging models as the biggest challenge posed by the Retail Distribution Review (RDR).
Results from the latest Aviva RDR Barometer indicate that nearly four out of ten advisers (39%) believe switching to fee-based advice is their greatest challenge. In October 2009, when the survey was last conducted, about a quarter (27%) of advisers said charging was an issue.
And an increasing number of advisers say switching business models from up-front commission to recurring income will be their greatest challenge (22% in 2010, 20% in 2009).
But the Aviva RDR Barometer also found that fewer advisers are concerned about gaining the correct qualifications. Less than a quarter (24%) of advisers now say that gaining QCF Level 4 is their biggest challenge, down from one in three in 2009.
Angela Seymour-Jackson, distribution director at Aviva, said: “Our figures show that advisers are now seeing their biggest challenges as changing business models and introducing adviser charging so they can maintain their income up to and beyond the introduction of RDR.
“It will be crucial for advisers to be able to explain the benefits of their advice service so that clients will be able to understand that it represents good value for money.
“It’s good to see that fewer advisers are concerned about gaining the right qualifications, which suggests that more are making good progress towards the required level. Aviva is putting time, effort and resources into helping advisers gain the qualifications necessary to see them through RDR and beyond.
“The Aviva Financial Adviser Academy is proving to be a tremendous success with 6,400 advisers already enrolled. The Aviva RDR Barometer and our Academy members’ exam results show advisers are starting to gain additional qualifications.
“We’re also doing more to help advisers get to grips with RDR. We’re changing our propositions so that they’re ready for advisers switching to fee-based advice, and we’re encouraging new entrants into the profession through our unique Future Adviser Programme. We’re also piloting a tool to help advisers better understand and segment their client base. And we’re looking at providing services which advisers can direct their clients to where appropriate, helping to free up their time – such as our Retirement Income Calculator which we launched earlier this year.
“At Aviva, we’re well placed to support advisers through the massive change that RDR will bring to the industry, and to advisers personally.”
For further information, please contact:
David Gwyer, Aviva Press Office: 01904 452659 / 07800 693187 / firstname.lastname@example.org
Jess Geoghegan, Aviva Press Office: 01904 684128 / 07800 695673/ email@example.com
Notes to editors:
All findings are from the Aviva RDR Barometer, which tracks financial advisers’ views on issues related to the RDR, on a regular basis.
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* based on gross worldwide premiums at 31 December 2009