Confident advisers report boost from protection business

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Advisers have reported confidence post-RDR and a boost to business from increased protection income streams.

According to a Positive Solutions survey, one in four adviser businesses feel threatened by RDR but an overall three quarters of IFAs have not lost any clients following implementation.

The poll of the firm's 212 partners, found that only 14% had lost between 1% and 10% of their clients.

The research also showed 27% were unsettled and threatened by the new regulatory regime.

But Positive Solutions said in the wake of RDR, protection specialist business was now "a worthwhile role" for unqualified advisers that had chosen to no longer offer pension and investment advice.

Ian Clisby, head of development and service of Positive Solutions, said: "Our survey tells us that we can't rest on our laurels. Our focus now is on making our business more appealing to IFAs and ensuring we help our partners build stronger and more profitable businesses."

Advice firm Principal Financial Planning reported a significant increase in protection business post-RDR.

Chris Daems, director of the firm, said: "We have seen an upturn in queries from clients who want to put provisions in place to protect their businesses, families and incomes.

"We continue to operate a commission-based protection proposition to satisfy these client's needs and have found this suits our clients who are in earlier life stages where their priorities, net disposable income and wealth levels suit this kind of arrangement."

He added early preparation meant overall the firm had not seen any fundamental impact from RDR, with clients willing to pay fees and increase in queries from the corporate market.

Simon Bonnett, head of wealth management at Fiducia Wealth Management, said overall new client enquiries had doubled since the FSA's retail distribution review set in.

He said: "A lot of advisers have left the industry. Certainly it is the end of the tax year but the new business enquiries are much higher than normal. I think it is driven by advisers that have left the market.

"And we did not fully appreciate how many bank advisers would be got rid of. That has left a lot of people not knowing where to go for advice too."

But adviser network Tenet reported there were no significant overall general trends in terms of influxes of new business for members post-RDR.

Keith Richards, group distribution and development director at Tenet, said: "It very much varies from firm to firm. Those that have been pro-active in the market can attract consumers who cannot find advice elsewhere.

"The reason we are not seeing huge amounts is because it is very early into RDR and few advisers have left without making other arrangements."

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