A further one in ten (9%) said they were already RDR compliant when the new proposals were published. Only one in eight (12%) say they do not intend to go through this process.
Of those who have reviewed or are undertaking a review of their business over a third (35%) intend to make greater use of web based platforms and advice programmes to get through transition. Just under a third (31%) will choose to go it alone and use only internal resource.
Chris Cummings, Director General of AIFA, said:
“We appreciate the size of the current challenges faced by the IFA profession but are pleased to see the positive steps being taken by the majority to ensure a profitable future. To help firms adapt to future challenges, including the RDR, we have set up an online business academy, AIFA FFWD, with the support of Skandia. The service is free for AIFA members and has been well received by those who have signed up ahead of the full launch at the end of the month.”
The research also shows that over a quarter (30%) believe that the biggest business challenge for IFA firms will be changing the pricing and charging models. A fifth (20%) believes that defining and changing their client propositions will be the biggest challenge.
Chris added:“The AIFA FFWD academy has been specifically designed to help IFA firms survive and thrive in the future. The business academy will help firms to develop a vision for the firm, segment existing clients and determine how to charge different services. This is a revolutionary new service for AIFA members and I would encourage firms to sign up now ahead of the full launch.”
The research is part of AIFA’s work to help IFAs meet the demands of RDR and follows the first phase launch of its online business academy (www.aifaffwd.net), which is supported by Skandia. The full version will be available at the end of September. Once complete the academy will provide a Financial Modelling module that will enable IFA firms to gain a realistic understanding of the financial impact transition will have upon their business.
