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Transformation gathers pace in international advice market

29/06/2017
  • 92% of advisers recognise the need to transition
  • 89% agree regulatory change is a good thing
  • 60% of advisers are changing their business model
  • 88% recognise benefits of changing to a recurring fee business model 

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.

For more information contact

Sophie HeywoodOld Mutual Wealth02380 91677007834 499558sophie.heywood@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.