Research from the Personal Finance Society suggests 20 per cent of firms are not ready for the RDR, based on a member survey from September.
The professional body polled 2,298 of its members in September and found that 90 per cent of respondents believed they were RDR ready. This proportion dropped to 80 per cent when advisers were asked whether they believed their firm was ready.
The remaining 20 per cent of advisers identified implementing an adviser charging model and a lack of service and cost disclosure documents as the most common outstanding areas that need to be addressed. Others include VAT liability, client segmentation and defining the client proposition and whether to offer independent or restricted advice and capital adequacy.
PFS chief executive Fay Goddard (pictured) says: “I am concerned advisers are leaving it so late to make these changes.”
She adds: “Of the minority who are not ready, around half still need to complete gap-fill and the rest, either to complete the level 4 qualification or obtain an SPS.
“Eighty per cent of respondents considered their firms to be ready and outstanding matters were much as expected, with the majority of those who felt employers weren’t ready suggesting they needed to implement new service and cost disclosure documents and establish adviser charging models. If this statistic is representative, one in five firms needs to seriously get a move on.”
Sovereign IFA director Mark Hibbitt says: “Some advisers have focused on getting their exams and forgotten about the business impact of the RDR.”
Click here to read more on the PFS’s research.