Pensions product providers and fund supermarkets are buckling under the strain of process and systems changes required by the Retail Distribution Review (RDR), finds a new survey by retirement solutions specialist Dunstan Thomas. The providers and platforms surveyed just last month admitted struggling to make important changes in time for the RDR implementation deadline in less than seven months time.
Posts Tagged ‘business’
Monday, May 21st, 2012
Wednesday, July 21st, 2010
The pensions industry in the UK is the second largest in the world after the US, with assets totalling over £260bn in personal pensions. Introduced in the early 1990’s the Self Invested Personal Pension (SIPP) market has grown year on year so that there are now over 500,000 plans in force. On going annual growth is predicted at a conservative rate of around 20%.
Thursday, July 23rd, 2009
Anything or nothing could happen at FP depending on the Resolution bid. I heard a suggested price of £50 million for James Hay which for £10 billion of assets (shrunk by about 20% from 2 years ago) is only 0.5%, about 1/10 of what it ought to be which is presumably a reflection of poor efficiency/profitability and current business prospects and the amount which a buyer would have to spend to upgrade systems and shrink the staff by at least x% (unless they can double the assets pronto without additional staff).
Thursday, April 30th, 2009
In a kind response to comments to the new Dunstan Thomas business guide – “WRAP platforms – transforming the way advisers do business” from Kevin Jack of Enhance Solutions…..
Thanks for your email below and the WRAP publication which is very thorough and ticks all the boxes as far as I can tell regarding the development of the Wrap market.
Assuming RDR is delivered on time, I can see potential chaos as IFAs who wish to remain independent struggle to divorce themselves from commission payments – it’s bad enough effecting a change of agency let alone rewriting the whole commission model. Therefore, your point about IFAs unbundling commission arrangements sooner rather than later has resonance and will place them at an advantage over their competitors.
Although it was given a thumbs down in the survey results, one of the results of RDR is the potential for Wrap providers to take the place of Bancassurers or life companies as ‘direct to consumer’ distributors of product. I can see people flocking from banks for advice and also many consumers wishing to take control of their own affairs (‘what do I need to pay an adviser for?’) – maybe a Wrap provider may become the new ‘man from the Pru’ (possibly the ‘man from Novia’?). Wraps lend themselves to online distribution, so direct to consumer via the web must be a route under consideration.
My final observation, also highlighted in your report, relates to Wrap flexibility to accommodate esoteric investments; this appears especially pertinent now as many advisers look to alternative investments for positive returns, such as structured products, life settlement funds and film partnerships to name a few. Any Wrap that can accommodate these within their tax wrappers will be at an advantage.
Wednesday, May 23rd, 2007
We’ve finally added a blog to our site to enable us to better communicate our news, views, and plans for the business. Stay tuned for more soon.