A growing number of international advisers are recognising the effect that regulatory change and shifting client expectations is having on the international advice market, according to a recent survey* by Old Mutual International, part of Old Mutual Wealth.
The survey shows that the overwhelming majority (92%)** of international financial advisers are aware of the regulatory change taking place in their region and the need for advisers to transition to a new model. 89% believe regulatory change is a good thing, with the top three reasons cited as:
- ensures greater transparency which benefits the client
- helps to professionalise the advice industry
- puts a greater focus on advice rather than being sales led
60% of international advisers have either transitioned their business or are in the process of transitioning their business model and changing the amount of business they write on a full initial up-front fee/commission basis. 88% of advisers recognise the benefits of moving from full initial up-front fees/commission to taking less up-front and more on an ongoing basis. Top reasons cited were:
- helps build better long-term relationship with clients
- improves the value of the business
- lower initial charges help improve client outcomes.
To help support advisers looking to transition their business, Old Mutual International has developed a programme of support called ‘Future Fit’. The Future Fit initiative is designed to support advisers at every stage of their transition journey, helping them evolve and build a sustainable business. Advisers can use an online resource centre, providing them with access to expert guidance, downloadable learning packages, articles, and videos. Advisers can find out more at www.oldmutualinternational.com/futurefit.
Brendan Dolan, sales director, Old Mutual International:
“With the international advice landscape rapidly changing, it is really encouraging to see advisers recognise the need to adapt. The vast majority of advisers are evolving their charging model towards an ongoing service proposition with their customers, and they recognise the significant customer benefits this can bring. For advisers who are interested in transitioning their business model, but are not sure where to start, Old Mutual International’s Future Fit programme of support could help them.”
*Old Mutual International adviser survey, May 2017, 210 respondents from across the UK, Europe, Middle East and Asia.
** This result excludes UK financial advisers, as they were not asked this specific question.