Zurich says advisers 'are rising to RDR challenge'

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."

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• Topics
• Regulation
• Zurich
• adviser firms