Last Thursday I attended the third in a series of workshop events organised by AXA. The workshops have been held at the Thistle Haydock Hotel and were attended by representatives from a number of the leading wealth management companies from the north west of England.
The events were held to help to ensure that firms were fully aware of the impact the Retail Distribution Review (RDR) will have on their business and, more importantly, to make sure that clients can continue to be provided with quality independent financial advice.
RDR has been described as the biggest ever change to affect the financial services industry. When RDR comes into effect on 1st January 2013 commission payments to financial advisers will be outlawed and customer agreed remuneration will take its place. This basically means that an adviser and client will agree a fee for any advice and or work and that fee must be paid separately from and not be dependent upon the sale of a product. RDR will also see the introduction of a minimum level of qualification for all financial advisers. Those companies that are not willing to adapt and continue to work on a commission model will soon become extinct.
At David Allen Financial Services we are fully prepared for and embrace the forthcoming changes. All our advisers already have the required level of qualification and I believe the move towards fees will enhance our service proposition, provide greater clarity on charges removing the ‘smoke and mirrors’ that exists with certain products at the moment and increase professionalism throughout the industry.