As the RDR deadline approaches, providers and advisers shouldn’t miss out on an opportunity for a head start
Financial services outsourcing company OPAL today urges advisers and product providers to consider delegating product development processes if they are to successfully kick start their post-RDR business models. With the December 31st deadline fast approaching, the issue of migrating to an RDR-compliant service is now a pressing priority for advisers as the replacement of commission with service fees will signal a seismic change for business structures. The removal of commission presents financial product providers with significant challenges when it comes to differentiating and incentivising product offerings and encouraging advisers to continue engaging with them.
Advisers will need to make it their top priority to develop closer and longer term relationships with their clients, and providers will therefore need to up their game and increase the focus on helping IFAs to meet the new service demands by delivering more efficient, cost-effective and convenient offerings.
Tony Collins, Chairman of OPAL, said:
“It’s clear that service will become the main selling point – and effectively the new commission – in the post-RDR world. Advisers will have their work cut out, with the need to focus on delivering a new even more client-centric business model, along with keeping up with the constant changes to qualifications, rules and regulation. Therefore the product providers that are able to provide the most assistance to advisers as well as the best value products will find themselves increasing sales. In short, time will be money for everyone post RDR and anything providers can do to deliver products quickly and efficiently will be of more assistance to advisers and therefore they will reap the benefits.”
Collins continues:
“Advances in technologies offered by third parties make it quick and cost-effective to carry our tasks ranging from marketing, client communications and product distribution. Time is very much of the essence with just months remaining until the RDR’s implementation date. The quicker providers realise the benefits to be gained from outsourcing for service and efficiency, the bigger their head start will be in January 2013.”
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