Retail Distribution Review

239
-1

Published on

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
239
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Retail Distribution Review

  1. 1. Retail Distribution Review Scots Financial Advisor William George explains the benefits for clients of Financial Advisors Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Image by PT Money - Creative Commons
  2. 2. "I'm excited to announce that our industry has recently undergone the Retail Distribution Review." Let's take a look at this review in more detail, covering how it will help you in making investment decisions. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Image by PT Money - Creative Commons
  3. 3. Retail Distribution Review Q: What is RDR? A: Retail Distribution Review is a new fee schedule that seeks to… ● Raise the standards of the industry ● Ensure more clarity, with regard to different financial products ● Allow for detailed costs to be shown up front, when dealing with a financial advisor Copyright: All Rights Reserved 2013 William George www.williamgeorge.info
  4. 4. Q: What is new about it? A: RDR will introduce a level of transparency that the industry has lacked in previous years. This is because now advisers cannot be paid commission through product providers. Instead clients are charged a fee for advice and know exactly how much they will pay in advance. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  5. 5. Q: How will this affect me? A: The new flat fee system means charges will be based on the level of expertise of your financial advisor, so clients can have more confidence in the advisor's skill set. The financial services industry will be seen as more trustworthy because of RDR too. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  6. 6. Q: I would definitely like Financial Advisors to be more trustworthy... A: The Association of Independent Financial Advisers, (AIFA), recently conducted research and found that trust in the industry rose to 98% when using a qualified financial planner. They discovered that independent financial advice was rated as very good or excellent, by a significant portion of clients who use a qualified advisor. Therefore, client retention rate is generally high. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  7. 7. Q: How much difference does the right advice make? A: The AIFA report found that people who use a financial advisor, have a better financial outlook for their portfolio, more so than those who choose to go it alone with no advice. And, people who use a financial advisor for retirement planning have an average of £74,554 in their retirement account, while those not using an advisor’s services plummet to nearly half of that amount. Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk Retail Distribution Review
  8. 8. Q: Has the RDR had a big effect on the financial industry? A: The industry has actually seen quite a large exit of financial advisors from the investment sector. This is because many large organisations no longer view this as a profitable business model and have made the decision to stop offering these services. Those companies who have consistently provided significant returns for their clients however, will remain in the financial sector as qualified advisors, unaffected by the changes. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  9. 9. Q: How will the RDR help advisors as well as clients? A: Personally, I see the RDR changes as a way for me to demonstrate clearly the value of the services I provide. This is because the Retail Distribution Review places everyone on a level playing field. Now, no matter what your net worth may be, my financial service charges will be the same for everyone. I am looking forward to including all levels of income in my practice, because my main goal has always been my clients and their financial well-being, no matter what background or social status. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  10. 10. Q: What didn't work in the past before the new RDR? A: Many people had no understanding of the level of expertise being provided to them because of the large number and types of advisors so sometimes were being advised by people without a solid understanding of the world’s markets. It’s important for the public to understand the level of experience of the financial advisor they choose, in order to protect and grow their investment and retirement portfolios. Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk Retail Distribution Review
  11. 11. Q: What types of Financial Advisors are there now? A: Clients can choose between an Independent Financial Advisor or a Restricted Advisor. Independent advice: Advisers that provide ‘independent’ advice are able to consider and suggest all types of retail investment products which could meet your needs and objectives. They may also suggest products from companies right across the market. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  12. 12. Q: Can I have more information about Independent Advice? A: Independent Advisors can... ● Consider all suitable retail investment products ie “whole of market” ● Can use ‘independent’ to describe the advice they offer ● Must explain to you the type of advice they offer They cannot… ● Be paid commission and incentivised to recommend one product over another ● Restrict their consideration of products to only those of certain product providers Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  13. 13. Q: What does a Restricted Advisor offer? A: A ‘restricted’ adviser can only recommend certain products, product providers, or both. This means they might only offer products from one company, or just one type of product. For example a restricted adviser offers restricted advice for who they work with or for a product provider and only offer advice on the products that specific company offers. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  14. 14. Q: What can or can't a Restricted Advisor do? A: They can... ● Can focus only on a particular market (ie specialise in say pension advice) ● Can restrict their consideration of products to only those of certain product providers or they can (if they specialise) choose from “Whole of Market” ● Must explain to you the type of advice they offer They cannot… ● Be paid commission and incentivised to recommend one product over another ● Consider all suitable retail investment products ● Use ‘independent’ to describe the advice they offer ● Has to explain to you the type of advice they offer Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  15. 15. Q: What can you offer as a Restricted yet “Whole of Market” Financial Advisor? A: I will be able to offer my clients, both old and new, comprehensive offering of financial instruments from today’ s marketplace. This is because I provide “whole of market” advice because I specialise in pensions, even though the term “Restricted Whole of Market Advisor” can seem something of a contradiction. Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk Retail Distribution Review
  16. 16. Q: If I am a client of yours what changes will I see? A: The main change my clients will see is much more clarity in terms of what you will pay for your advice. During our initial visit, or continuing visits for current clients, I will explain in full all the changes and the options you’ll now be able to choose from. We’ll review my charges, ensuring you are comfortable with the fee structure, or consider other options you may want to explore. Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Retail Distribution Review
  17. 17. "It is important to me that my clients are well informed, understand the depth of my financial knowledge and continue to feel confident in the financial decisions we make together." If you have questions I'd welcome talking them through with you. Call FREE on 0800 321 3508 Copyright: All Rights Reserved 2013 William George www.williamgeorge.info Image by PT Money - Creative Commons
  1. ¿Le ha llamado la atención una diapositiva en particular?

    Recortar diapositivas es una manera útil de recopilar información importante para consultarla más tarde.

×