Adviser Blog - are the changes in financial services an opportunity, a threat or both?

Originally written for inclusion in FT Adviser - Letter of the week.

Firstly let me say this, I appreciate the fact that some of the upcoming changes in our profession are unsettling to say the least.  However one thing you can be sure of, especially in our world, is constant change.  Therefore one thing I can’t understand is the constant flow of letters in the trade press and posts of financial forums bemoaning RDR.  Surely at this late stage most advisers and advisory firms have made one of two choices, either to prepare for the upcoming changes or to leave the business.

Whilst RDR provides a challenge, it also provides a range of opportunities for the professional advice community.  It also means that there is more focus on a  IFA’s looking at their existing business model and moving towards a more sustainable (post RDR) business model and a move towards more clients receiving a high standard of ongoing service, and surely that’s a good thing.

Also, I believe there will be a greater demand for advice in the corporate / SME business market due to the introduction of auto enrolment.  Whilst there are certain firms which are active in the market, there doesn’t seem to be enough to meet the potentially overwhelming demand of firms seeking advice to prepare for the upcoming changes they will need to make.  I believe that the business demand, if we position ourselves correctly will be ready to take these opportunities.

However one concern I have is that a large part of the population may not have the opportunity to seek affordable independent financial advice at a time when they may need it the most. 

Any advice business needs to ensure they remain commercial and unfortunately all of us need to make a sensible decision about who we can afford to provide our service too.  I suspect that the internet will play a part in filling this gap providing a low cost guided solution, so it will be interesting to see how either web based financial guidance (or web based advice) may develop over the next year or so.