Effect of RDR on the UK Life Industry « DT Imago Blog

There are 5 key areas that RDR is llikely to effect UK Life industry.
1. Distribution competition – the model for most financial adviser is not sustainable
2. Consumer Forces – consumer access at an all time low with poor public perception market and mistrust. Furthermore consumers are looking for commoditised transparent products, demanding high services level. Most consumers do not seek advice.
3. Wraps and Technology – platforms regarded as the solution as the compete for AUM and scale to make the economics work.
4. Regulation – FSA RDR, TCF, National Pensions Saving Scheme.
5. Providers – manufacturers are at risk through – Capital shortage, margin erosion, disinermediation and consolidation.

Tags: adviser, distribution competition, financial adviser, Life, margin erosion, Model, perception, public perception, RDR, technology platforms

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