Old Mutual International is gearing up to deal with regulatory change as its managing director says there are big changes looming for advisory business.
“I think everybody now finally realises that change is coming, and that advisory firms have to change their business models in response to new regulations.
“It’s clear that some firms have embraced it quicker than others, but I’m encouraged by what I see,” said Peter Kenny, managing director of Old Mutual International Isle of Man, in an interview with local newspaper IoMToday.
“Based on the work we’re doing with our advisers, we think the vast majority of them have acknowledged and accepted that they must change.
“That’s the most important point, but they must also understand that they are going to have to put a little bit more time and effort into the asset choice, that is the question of where they place their clients’ investment, and make sure that it’s appropriate for retail customers as opposed to institutional customers.”
However, he feels confident the industry is ready for the challenge. “These are big changes for advisory businesses, but from what we have seen so far we think the vast majority have accepted the challenge and will be prepared for the impact of regulatory change.”
Asked by IoMToday, what was the main focus for Old Mutual International for the rest of the year, he gave some insight into the company’s future plans.
“There are three key areas we’re focusing on: our core markets, high net worth and, of course, regulatory change. While the high net worth space is not new to us by any means, it was a particular focus for the business last year and it paid real dividends. It will continue to be a priority for the remainder of this year but in addition to, not instead of, our focus on core markets.”
Kenny added the core markets in which the company operates in today are the UK, Europe, Asia, Middle East, and Latin America.
“Our aim in the foreseeable future is to continue to develop in these regions, and put down even deeper roots in those markets.”
The Isle of Man Financial Services Authority has issued a 2018 Roadmap for updating the Isle of Man’s regulatory framework.
The Financial Services Compensation Scheme (FSCS) has declared nine financial advice firms in default in March, two of which advised on British Steel transfers.