When it comes into force on 1st January 2013, the Retail Distribution Review will mean fundamental changes for firms involved in Wealth Management, whether you offer this in-house or refer to an external IFA.
A big area of concern is the issue of professional competence where individuals must reach QCF Level 4 standard by the end of 2012 and the new, higher, capital requirements.
A report by Ernst & Young, published in September 2009, predicted that of the 35,000 IFAs currently in existence, 10,000 might be left three years after the rules come into force in 2012.
So what does this mean for Accountants?
2020 have forged a strategic partnership with Positive Solutions, one of the largest financial advisory businesses in the UK. Whether or not your firm is offering Wealth Management, Positive Solutions have some very attractive propositions to help firms in the post Retail Distribution Review environment.
For Accountants who refer work to an external IFA
According to Shaun Crawford, head of insurance advisory at Ernst & Young “...there clearly a question over the number of advisers who will remain following on from the current economic climate, increased capital adequacy levels, and the RDR’s professional standards proposals.”
Many industry commentators are expecting at least a third of IFAs to leave the profession by 2012 and this is going to cause a huge issue for firm’s who are referring work to the “IFA down the street”.
To assist 2020 Members, Positive Solutions can provide an adviser of your choice, to your firm for an agreed amount of time per week/fortnight. The proposed structure alleviates you from virtually all regulatory responsibilities, including commission disclosure.
For Accountants with an in-house IFA
According to Shaun Crawford, head of insurance advisory at Ernst & Young the impact of the RDR simply cannot be underestimated: “The ripple effects will soon become seismic waves as the proposals look set to impact across many areas of the industry...As a rule of thumb, the new rules will add about £6,000 per adviser to a firm’s costs.”
Many firms and their IFA’s are now recognising the importance of having a robust support function as the onset of the Retail Distribution Review looms.
We are now seeing a number of 2020 firms ‘reversing’ their operation into Positive Solutions and using them as a services provider and back-office support mechanism to enable the practice to generate more revenue, increase profitability and obtain greater support in the area of Wealth Management.
For Accountants that wish explore Wealth Management opportunities
Most of us can now all agree, that offering Wealth Management to our clients is definitely a service that clients are looking for from their accountant and, in any case, can be very lucrative.
Positive Solutions have a very attractive offering are very well placed to deliver a profitable, ethical and professional Wealth Management solution to firms, with a service that is tailored to your individual needs.
There are a number of good reasons why Positive Solutions might be right for your practice.
