International advice market ready for ‘transformation’: OMI survey
The majority of international financial advisers are already implementing dramatic changes to their businesses as a result of regulatory change and shifting client expectations, according to a survey by Old Mutual International.
More than nine out of every ten (92%) of international financial advisers are aware of the regulatory change taking place in their region and recognise the need for advisers to transition to a new model.
The OMI survey, conducted with international advisers across the UK, Europe, Middle East and Asia, found that 89% believe regulatory change is a good thing, with the top three reasons cited as: [it] ensures greater transparency which benefits the client, [it] helps to professionalise the advice industry and that it puts a greater focus on advice rather than being sales led.
Six out of ten (60%) of international advisers said that they 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, as a result of the changes.
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, the OMI survey said. Top reasons cited were: that it helps build better long-term relationship with clients; improves the value of the business and lower initial charges help improve client outcomes.
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.
‘Evolving charging model’
“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,” he said.
OMI has designed what it calls ‘The Future Fit’ initiative, 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.
“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,” added Dolan.