18th March 2013

Ascentric: Adviser confidence grows post-RDR

• 82% of advisers are more confident about the financial services sector than this time last year
• 67% believe that RDR has improved their business model
• 43% see growing their client base as the next big challenge

The results of a survey run by Ascentric show that advisers are now ‘more confident about the financial services sector than they were this time last year’. The survey was taken at the Ascentric Conference attended by more than 300 advisers in Bolton, Bath and London during February.

82% of respondents agreed with this statement compared with 69% who were posed the same question at the Ascentric Conference in November 2011. Significantly, the survey also showed the positive impact RDR has had on adviser business models, with 69% supporting this statement compared with just 7% who felt it had had a negative impact.

Despite initial concerns over transparency and what this might mean for client revenues and retention, the ability to extract fees from clients does not appear to be a key concern for advisers. Instead, the survey highlights an ability to grow their client base (43%) as well as maintain revenues (25%) as the main challenges faced by firms.

“With RDR now in place, this survey points to real optimism in the adviser market as firms reap the benefits of the hard work they have put in over the last few years in re-orientating their businesses and reclaiming more and more of the value chain”, commented Mike Morrow, Sales and Marketing Director at Ascentric.

“This survey suggests that revenue generation remains a concern; something that is only likely to increase as the post-RDR environment opens up the traditional adviser client base to further competition. To achieve future business targets, adviser firms may need to access new markets and diversify their business model - an area that I believe platforms will be uniquely well placed to support.”

RDR