04 Aug Survey Claims IFAs Aren’t Ready for RDR Technology

A recent survey conducted by Avelo has indicated that a large number of financial advisers are still not ready to make the transition to the retail distribution review regulations, especially on a technological level. The survey also found that around a third of those questioned were unprepared for the possible impact of VAT on their business. Only one in six is believed to be fully prepared for RDR. Paul Yates, strategy and business development director for Avelo, commented "Regulation and regulatory measures are something that are becoming more and more prevalent in the financial services industry. "Although it is very positive and considered in the development of a more transparent industry, it still leaves many businesses feeling unsure and in need of direction and advice." Many are also worried about not having the technology to deal with the RDR, with only 44% proclaiming confidence that their back office provider would give them something that will help the transition. This has led to more than half of those surveyed amalgamating data manually instead. Around 45% anticipate no problems in meeting the requirements, while 27% believed that they would definitely face problems. Mr Yates continued "The increased level of scrutiny on businesses to provide financial information and the impact of this leaves us in little doubt. Many firms are going to need agile, high-quality technology solutions to manage regulatory pressures post-RDR. The level of readiness is varied across the industry."