The majority of retail investment advisers planning on leaving the industry cite the retail distribution review (RDR) as one of their reasons, research commissioned by the FSA shows.
A research paper written by RS Consulting for the regulator says “just” 8% of advisers plan to leave the industry after December 31 2012, which is the date of the RDR’s implementation.
“Projected departure was for a combination of reasons: intention to retire earlier than planned, a switch to an industry role other than retail investment adviser or the intention to leave the industry altogether,” the study says.
The research adds that 62% of early leavers cite one or more of the professionalism requirements of the RDR as being “very” influential factors on their decision to leave. The need to gain an RDR Appropriate Qualification was the most frequently cited requirement.
In addition, the study shows there is a disproportionate share of older advisers in the early leaver group. Some 35% of advisers aged over 60 plan to leave the industry, compared with the overall average of 8%.
Some of these advisers “were unwilling to acquire additional professional qualifications for a role they think they have been performing to their clients’ satisfaction for many years”.
The survey also reveals that 85% of advisers intend to remain in the industry after December 31, 2012, while 7% are currently unsure of their plans.
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