Table of Contents
OVERVIEW
- Catalyst
- Summary
- Methodology
EXECUTIVE SUMMARY
- Advisors have predominantly maintained an independent business structure
- Advisors view Skandia and Invesco Perpetual as offering the best level of
service
- Providers' ability to develop tailored solutions in the midst of channel
competition and regulatory challenges will be important factors for IFAs
TABLE OF TABLES
ADVISORS IDENTIFY PROVIDER AND CUSTOMER PREFERENCES
- Introduction to Datamonitor' s Q2 2009 Financial Advisor Survey
- The financial advisory market is predominantly occupied by small, single
outlet firms
- Abbey and HSBC continue to be less popular amongst advisors
- Among life assurers, Abbey continues attracting a net negative response
from IFAs
- Skandia is rated positively by IFAs for its level of service and quality
of products in contrast to Abbey
- Invesco Perpetual continues strongly in IFAs' perception of their levels
of service and quality of products in Q2 2009
- However, HSBC receives the least positive votes from advisors
- The most important trigger for visiting an advisor is for retirement
planning advice
- Personal recommendations are vital when choosing an IFA
PROVIDERS NEED TO DEVELOP TAILORED SOLUTIONS FOR ADVISORS DURING ECONOMIC AND REGULATORY CHALLENGES
- Economic turmoil represents the biggest challenge for the IFA market
- Providers' product innovations must focus on the risk profile of today' s
consumers
- ISAs stand out as the product IFAs are most positive about
- Income protection has the best outlook while whole-of-life is the least
attractive option among protection products
- Advisors are uncertain about the future sales of investment bonds
- Sales of mutual funds will gain growth potential once equity prices
become more attractive
- Individual SIPPs will prove to be a less difficult sale compared to
other pension products
- IFAs expect the RDR to create a more competitive distribution environment
- IFAs perceive high street banks to pose the biggest threat for clients
to their market
- Banks are suited to offering simpler life and pensions products such as
mortgage-related protection insurance
- The recently tarnished brand reputation of banks will limit their entry
into the life, pensions and investment market
- Banks are perceived to be unable to offer the same level of service and
advice as IFAs but this may change in the post-RDR landscape
- Online price comparison sites are also a strong contender for IFAs'
client base
- Those who are able to offer open architecture and unique solutions to
client' s needs will harness the competitive advantage
- IFAs have an advantage over wealth managers in being able to offer truly
independent advice
- IFAs rank their ability to provide unique solutions to clients as their
greatest strength
- However, IFAs and wealth managers both believe that their strength lies
in having personal relationships with clients
- An even closer client relationship can be fostered through regular and
more frequent contact
- Providers who can invest in technology today have an opportunity to gain
competitive advantage
- Providers should bring in end-customer focused propositions while
uncertainty surrounds RDR impact on the IFA-centric model
- Advisors believe that the RDR will not hit the target of increasing
consumers' access to financial advice
- IFAs believe they will be forced out of the market as a result of the RDR
- Whatever uncertainty surrounds RDR impact, changes to an IFA' s business
model are essential for success
- The end-customer should receive clarity of communication if the RDR is
to succeed
- The final focus must be on meeting customers' needs and demands for
financial advice
APPENDIX
- Data
- Definitions
- Single premium policy
- Regular premium
- Wrap accounts
- Product definitions
- Life based savings products
- Life Assurance
- Single premium life
- With-profit bond
- Unit-linked bond
- Income and growth bonds
- Guaranteed equity bonds
- Distribution bonds
- Purchased life annuities
- Other bonds
- ISAs
- Matrix-Data definitions
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: How do you see business in each of the following areas changing
over the next 6 months?
- Table: How do most of your clients find you?
- Table: What type of organisation do you work for?
- Table: Please rate the following providers in terms of the level of
service they provide to you? (1-5, with 5 being highest level of service and 1
being lowest)
- Table: Please rate the following providers in terms of the quality of
products they offer? (1-5, with 5 being highest level of quality and 1 being
lowest)
- Table: Roughly, what proportion of your customer base falls into each of
the following asset bands?
- Table: How important are each of the following as triggers for clients
coming to an IFA?
- Table: On average, how often do you speak to your clients on the telephone?
- Table: On average, how often do you speak to your clients ace to face?
- Table: To what extent do you see the following as a challenge for the IFA
market?
- Table: Who do you see as the main competition for clients in your market?
- Table: Thinking about the changes the RDR will bring to the structure of
the market, to what extent do you agree with the following statements?
- Table: To what extent do you see each of the following as limiting factors
in banks' attempts to enter this market?
- Table: In what areas of your business and service do you see banks as most
competition to you?
- Table: Thinking about the potential threat that banks pose to the IFA
industry, please indicate the extent to which you agree with each of the
following statements.
- Table: Thinking about your clients, to what extent do you agree with each
of the following statements?
- Table: Which of the following do you consider to be relative strengths of
IFAs over wealth managers?
- Table: Thinking about the changes the RDR will bring to the structure of
the market, to what extent do you agree with the following statements?
- Table: Thinking about the possible changes to the nature of the wealth
management market in the UK, to what extent do you agree with the following
statements?
- Table: In what areas of your business and service do you see wealth
managers as most competition to you?
FIGURES
- Figure: The IFA industry is characterized by single outlet firms
- Figure: The clients of IFA surveyed tend to be at the lower end of the
asset band spectrum
- Figure: Skandia is viewed highly by advisors for the level of service they
provide
- Figure: Skandia is perceived by advisors to have high quality product
ranges
- Figure: Invesco Perpetual is perceived as offering best level of service
in relation to other asset managers
- Figure: Advisors rank Invesco Perpetual highly for their quality of
products
- Figure: Advice on retirement planning is a very important trigger for a
customer to visit an IFA
- Figure: Most clients find IFAs through personal recommendations from others
- Figure: IFAs perceive current economic conditions to be the most important
challenge to their market
- Figure: ISAs have the most growth potential over the next 6 months
- Figure: High street banks pose the biggest threat to advisors
- Figure: Banks pose a stronger threat to IFAs in terms of being able to
offer advice for protection insurance
- Figure: Tarnished brands and reputations of banks will be a hindrance
against their entry into the life and pensions market
- Figure: Banks do not pose a potentially strong threat to IFAs in terms of
service levels they provide
- Figure: Advisors strongly agree that HNW clients are defecting to IFAs due
to the truly independent service they offer
- Figure: IFAs weakest competitive factor is in technology
- Figure: Advisors believe their clients prefer the greater level of
personal contact IFAs can provider over wealth managers
- Figure: Advisors speak to clients by phone approximately twice a year
- Figure: IFAs speak to clients face-to-face approximately once a year
- Figure: The RDR will leave a middle market of clients who have no access
to advice
- Figure: 75% of IFAs believe they will be forced out of the market by RDR
|
Related Report
|
View Cart
