Retail Distribution Review (RDR) preparations are well underway, with 40 per cent of independent financial advisers (IFAs) planning a move to a platform-based business model, reports Defaqto.

A survey questioning 500 IFAs dealing in individual personal pensions found that the proportion of IFAs intending to shift business models towards platforms has increased by 12 per cent since 2009’s 28 per cent figure.

Platform adoption is challenging for IFAs, said Defaqto, but also presents opportunities.
Advisers should focus on their business direction in light of RDR requirements; client segmentation; and due diligence.

“It is clear that the RDR continues to provide a catalyst for platform adoption and, according to our findings, significantly more IFAs are now planning a move in this direction than a year ago,” commented Matt Ward, Defaqto’s Wealth Management consultant.

“However, when considering platform adoption, IFAs need to first consider the needs of their business and their client segments. Once these critical requirements have been identified IFAs can seek out platforms that will best meet these business and client needs. Key to successful platform selection will be the robustness of IFAs’ due diligence processes. IFAs should ensure that they devote resource to this process and where it cannot be carried out internally they should seek expert external assistance.”

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