Once RDR comes into effect it will affect the qualification requirements and how advisors define themselves. It has also proposed that the advisors will not be paid commission by product providers.
This will result in higher operating costs and increase CPD workload making it difficult for the IFAs to operate independently and forcing them to consider restructuring, Keith Richards, distribution and development director of Tenet told Money Marketing.
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A large majority of IFAs do not abide by the RDR’s new market requirements and this might result in the advisors having "to increase their advice range to meet the new requirements".
Richards says; "Many IFAs will choose to offer a restricted service because an independent model will offer little extra value to their clients."
As an independent service will not add extra value for a lot of IFAs’ clients after the RDR many IFAs might end up leaving the industry.
