Zurich says advisers 'are rising to RDR challenge'

clock

Over half of advisers (53%) have found the transition to the Retail Distribution Review (RDR) either smooth or very smooth, according to new research from Zurich.

Since the introduction of the RDR in January 2013, only 9% of advisers surveyed have reported major disruption to their businesses, while nearly a third (29%) think the new environment actually presents opportunities for growth.

This is despite two-fifths (40%) of those questioned saying they had changed their customer charging structure significantly, with a further (fifth) 20% claiming this had involved a complete overhaul as they were not accepting fees directly.

Despite concerns being voiced across the industry that access to financial advice will tail off as a result of RDR and customer charging, over three-quarters (78%) believe their customers are either accepting, or very accepting of the new model.

In addition, almost three-quarters (71%) are confident that their customers will continue to use their expertise for financial advice and planning in the future.

This confidence is also reflected in the responses to questions about the financial impact of the RDR, where over a third (36%) of advisers surveyed do not believe it has had a negative impact on overall revenue so far.

However, 69% think levels of regulatory costs on advisers are too high and don't reflect the risk an advisory business poses to consumers, with only a quarter seeing the costs as fair and proportionate.

Richard Howells, intermediary sales director for Zurich UK Life said: "Though it is still early days since the introduction of the RDR, these findings paint a positive picture of agile advisers operating in a new and challenging environment. As business models and income streams are shifting - advisers are having to embrace new ways of doing business. It comes as no surprise to me that many are rising to the challenge - with nearly a third seeing the RDR as presenting new business opportunities."

More on Regulation

The COVER Review: A budget on the horizon, private healthcare and product launches

The COVER Review: A budget on the horizon, private healthcare and product launches

Week commencing 1 September 2025

COVER
clock 05 September 2025 • 1 min read
Autumn Budget 2025 set for 26 November

Autumn Budget 2025 set for 26 November

Investment and reform

Cameron Roberts
clock 03 September 2025 • 3 min read
The COVER Review: FCA updates, acquisitions and IPT

The COVER Review: FCA updates, acquisitions and IPT

Week commencing 25 August 2025

COVER
clock 29 August 2025 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read