Financial Advisors' Views of the Post-RDR Landscape

리서치사	Datamonitor
발행일	2009년 08월	상품코드	99294
페이지 정보	63 pages
가격	US $ 4,495 ￦ 5,355,700 PDF by E-mail (Single User License) US $ 11,238 ￦ 13,390,000 PDF by E-mail (Global Site License)

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영문목차
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영문목차

Abstract

Introduction

Financial advisors have seen their business damaged by current market conditions and are concerned about their future relationship with providers during challenging restructures to business arising from regulatory burdens and threats in distribution channels. Providers must actively offer adequate support to IFAs in order to save the value of business.

Scope of this research

Reveals IFAs' opinion of how the RDR will change the competitive structure of distribution in the UK
In-depth analyses of the relative attractiveness of various products during the downturn and of the future competitive market structure.
Benchmarks leading L&P and Asset Management firms in terms of their product offerings and elements of service.

Research and analysis highlights

The most important trigger for visiting an advisor is for retirement planning advice, with 70% indicating this as a very important factor

When advisors were asked who they see as the main competition for clients in their market, 64% stated high street banks to pose the main threat for their client base. This was followed by 53% of advisors who see the rise of online price comparison sites as the main competitor for their client base.

A significantly large proportion of IFAs responded to say they anticipated the RDR to leave a ' middle market' of clients who will have no access to advice

Key reasons to purchase this research

Understand where IFAs' fears for the post-RDR world are coming from.
Assess the opportunies for other competitors to seize market share from IFAs.
Access the results of Datamonitor' s Q2 2009 IFA survey.

OVERVIEW

Catalyst
Summary
Methodology

EXECUTIVE SUMMARY

Advisors have predominantly maintained an independent business structure
Advisors view Skandia and Invesco Perpetual as offering the best level of service
Providers' ability to develop tailored solutions in the midst of channel competition and regulatory challenges will be important factors for IFAs

TABLE OF TABLES

ADVISORS IDENTIFY PROVIDER AND CUSTOMER PREFERENCES

Introduction to Datamonitor' s Q2 2009 Financial Advisor Survey
- The financial advisory market is predominantly occupied by small, single outlet firms
Abbey and HSBC continue to be less popular amongst advisors
- Among life assurers, Abbey continues attracting a net negative response from IFAs
- Skandia is rated positively by IFAs for its level of service and quality of products in contrast to Abbey
- Invesco Perpetual continues strongly in IFAs' perception of their levels of service and quality of products in Q2 2009
- However, HSBC receives the least positive votes from advisors
The most important trigger for visiting an advisor is for retirement planning advice
Personal recommendations are vital when choosing an IFA

PROVIDERS NEED TO DEVELOP TAILORED SOLUTIONS FOR ADVISORS DURING ECONOMIC AND REGULATORY CHALLENGES

Economic turmoil represents the biggest challenge for the IFA market
Providers' product innovations must focus on the risk profile of today' s consumers
- ISAs stand out as the product IFAs are most positive about
- Income protection has the best outlook while whole-of-life is the least attractive option among protection products
- Advisors are uncertain about the future sales of investment bonds
- Sales of mutual funds will gain growth potential once equity prices become more attractive
- Individual SIPPs will prove to be a less difficult sale compared to other pension products
IFAs expect the RDR to create a more competitive distribution environment
- IFAs perceive high street banks to pose the biggest threat for clients to their market
- Banks are suited to offering simpler life and pensions products such as mortgage-related protection insurance
- The recently tarnished brand reputation of banks will limit their entry into the life, pensions and investment market
- Banks are perceived to be unable to offer the same level of service and advice as IFAs but this may change in the post-RDR landscape
- Online price comparison sites are also a strong contender for IFAs' client base
Those who are able to offer open architecture and unique solutions to client' s needs will harness the competitive advantage
- IFAs have an advantage over wealth managers in being able to offer truly independent advice
- IFAs rank their ability to provide unique solutions to clients as their greatest strength
- However, IFAs and wealth managers both believe that their strength lies in having personal relationships with clients
- An even closer client relationship can be fostered through regular and more frequent contact
- Providers who can invest in technology today have an opportunity to gain competitive advantage
Providers should bring in end-customer focused propositions while uncertainty surrounds RDR impact on the IFA-centric model
- Advisors believe that the RDR will not hit the target of increasing consumers' access to financial advice
- IFAs believe they will be forced out of the market as a result of the RDR
- Whatever uncertainty surrounds RDR impact, changes to an IFA' s business model are essential for success
- The end-customer should receive clarity of communication if the RDR is to succeed
- The final focus must be on meeting customers' needs and demands for financial advice

APPENDIX

Data
Definitions
- Single premium policy
- Regular premium
- Wrap accounts
Product definitions
- Life based savings products
- Life Assurance
- Single premium life
- With-profit bond
- Unit-linked bond
- Income and growth bonds
- Guaranteed equity bonds
- Distribution bonds
- Purchased life annuities
- Other bonds
- ISAs
Matrix-Data definitions
- IFA firm types
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer

TABLES

Table: How do you see business in each of the following areas changing over the next 6 months?
Table: How do most of your clients find you?
Table: What type of organisation do you work for?
Table: Please rate the following providers in terms of the level of service they provide to you? (1-5, with 5 being highest level of service and 1 being lowest)
Table: Please rate the following providers in terms of the quality of products they offer? (1-5, with 5 being highest level of quality and 1 being lowest)
Table: Roughly, what proportion of your customer base falls into each of the following asset bands?
Table: How important are each of the following as triggers for clients coming to an IFA?
Table: On average, how often do you speak to your clients on the telephone?
Table: On average, how often do you speak to your clients ace to face?
Table: To what extent do you see the following as a challenge for the IFA market?
Table: Who do you see as the main competition for clients in your market?
Table: Thinking about the changes the RDR will bring to the structure of the market, to what extent do you agree with the following statements?
Table: To what extent do you see each of the following as limiting factors in banks' attempts to enter this market?
Table: In what areas of your business and service do you see banks as most competition to you?
Table: Thinking about the potential threat that banks pose to the IFA industry, please indicate the extent to which you agree with each of the following statements.
Table: Thinking about your clients, to what extent do you agree with each of the following statements?
Table: Which of the following do you consider to be relative strengths of IFAs over wealth managers?
Table: Thinking about the changes the RDR will bring to the structure of the market, to what extent do you agree with the following statements?
Table: Thinking about the possible changes to the nature of the wealth management market in the UK, to what extent do you agree with the following statements?
Table: In what areas of your business and service do you see wealth managers as most competition to you?

FIGURES

Figure: The IFA industry is characterized by single outlet firms
Figure: The clients of IFA surveyed tend to be at the lower end of the asset band spectrum
Figure: Skandia is viewed highly by advisors for the level of service they provide
Figure: Skandia is perceived by advisors to have high quality product ranges
Figure: Invesco Perpetual is perceived as offering best level of service in relation to other asset managers
Figure: Advisors rank Invesco Perpetual highly for their quality of products
Figure: Advice on retirement planning is a very important trigger for a customer to visit an IFA
Figure: Most clients find IFAs through personal recommendations from others
Figure: IFAs perceive current economic conditions to be the most important challenge to their market
Figure: ISAs have the most growth potential over the next 6 months
Figure: High street banks pose the biggest threat to advisors
Figure: Banks pose a stronger threat to IFAs in terms of being able to offer advice for protection insurance
Figure: Tarnished brands and reputations of banks will be a hindrance against their entry into the life and pensions market
Figure: Banks do not pose a potentially strong threat to IFAs in terms of service levels they provide
Figure: Advisors strongly agree that HNW clients are defecting to IFAs due to the truly independent service they offer
Figure: IFAs weakest competitive factor is in technology
Figure: Advisors believe their clients prefer the greater level of personal contact IFAs can provider over wealth managers
Figure: Advisors speak to clients by phone approximately twice a year
Figure: IFAs speak to clients face-to-face approximately once a year
Figure: The RDR will leave a middle market of clients who have no access to advice
Figure: 75% of IFAs believe they will be forced out of the market by RDR