Insights

Delivering investment products in a post-RDR world

Bridging the advice gap

Adviser Charging, which was introduced in the UK as a part of the Retail Distribution Review (RDR) from December 2012, transformed the retail distribution landscape. Financial advisers are no longer able to receive commissions from product providers for recommending retail investment products to customers. Instead, they have to charge their customers for advice.

This report, published prior to the implementation of RDR, explores the implications of Advisor Charging for customers and providers.

Key findings

Based on Deloitte analysis of more than 2,000 UK adults’ reactions to the new rules*, our report identifies that up to 5.5 million disenfranchised customers will either choose to cease using financial advisers or lack access to them.

These customers, who account for 11 per cent of UK adults, represent a significant post-RDR advice gap. However, for product providers who can serve the four segments within it effectively, the advice gap presents a major opportunity.

Our paper, ‘Bridging the advice gap: Delivering investment products in a post-RDR world’:

  • explores the implications of AC for customers and providers;
  • identifies four customer segments in the advice gap and how to reach them; and
  • sets out our thoughts on the way forward for providers.

*YouGov survey, commissioned by Deloitte, May-June 2012

 

View a snapshot of the key findings below or download the full report.

Bridging the advice gap infographic

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