Charging 'the greatest challenge' ahead of RDR

08 September 2010 at 15:35

Charging 'the greatest challenge' ahead of RDR There has been a significant increase in the number of advisers who regard adopting new charging models as the biggest challenge posed by the Retail Distribution Review (RDR), according to new research.

Data from the latest Aviva RDR Barometer shows that almost four out of ten advisers believe that switching to fee-based advice is their greatest challenge.

This is in comparison to the last review in October 2009, when only 27 per cent of advisers said charging was an issue.

In addition, an increasing number of advisers believe that switching business models from upfront commission to recurring income will be their biggest hurdle, with 22 per cent stating this in 2010 compared with 20 per cent last year.

Angela Seymour-Jackson, distribution director at Aviva, said it will be crucial for advisers to be able to explain the benefits of their advice service so that clients can understand whether it represents good value for money.

She added: "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."

Meanwhile, a new study by Defaqto has revealed that 54 per cent of Ifas use more than one platform in order to avoid jeopardising their 'independent' status in the eyes of regulators.

Posted by Claire Robin ADNFCR-3006-ID-800057068-ADNFCR

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