UK asset manager Schroeders released its annual survey results earlier this week highlighting what advisors in Britain think about Retail Distribution Review (RDR) and the effect it’s had on financial advice there.
For those opposed to RDR in Canada you’re not going to be happy about the results.
According to Schroders 82% of the 575 advisors surveyed thought that RDR has had a positive impact on the overall quality of financial advice in the UK since its introduction at the beginning of 2013.
“It is encouraging that advisers believe RDR has had a positive impact on the overall quality of advice, this is the highest approval rating advisers have given the RDR in the history of our survey,” Robin Stoakley, managing director, UK intermediary at Schroders said on the results. “It’s good to see the continued trend for advisers passing client assets to professional managers such as wealth management firms. In these uncertain times for markets, client portfolios need all the help they can get.”
The survey suggests that the outsourcing of portfolio management so that advisors can focus on the more holistic aspects of financial planning is happening at an increasing rate, something we’re also seeing here in Canada. It seems financial advice has become less about stock selection and more about cash and debt management, etc.
“The annual ‘Schroders Adviser Survey’, found that intermediaries feel that the new backdrop has resulted in far better clarity in terms of fees as well as more professionalism and awareness of adviser value,” wrote Mindful Money, a UK website dedicated to investors.