Skandia, part of the wealth management business of Old Mutual, has launched a free RDR Readiness Centre for financial advisers. The launch comes as more and more advisers are using the Retail Distribution Review (RDR) as an opportunity to reassess their business model.
The new online toolkit is designed to act as an information hub to help advisers set up a successful business model in the build up to the RDR.
Currently the RDR-readiness centre focuses on helping advisers design a new service proposition for the post RDR world. This module provides a range of third party and in-house resources for advisers that can be used to help develop a strategy for transitioning from a commission based advice model to a fee based advice model. With many elements to consider when re-designing and building a new service proposition, the section is split into three easily digestible core elements:
Business Costs – which looks at the actual cost to the business of advising clients
Investment Process – a look at the key elements of building a robust and repeatable investment process
Services and Charges – a guide on how much clients are willing to pay for the service they receive and the different charging structures that are available.
Over the coming months three further modules will be added to the RDR Readiness Centre focusing on:
How to introduce a new service proposition
Investment Process in a tin
How to drive profitability
Jeremy Mugridge (pictured), platform specialist at Skandia, says: “For those advisers with a reliance on commission and a desire to remain in business post-2012 there is a pressing requirement to transform their business to a fee based advice model. There are many providers and independent third parties in the market providing advice on how advisers might build a successful post-RDR business model, however too often these can be complicated and long-winded.
“Our new RDR Readiness Centre is designed to sign-post useful sources of information that can help advisers re-design their business and service proposition ahead of the RDR. This includes providing links to existing third party resources that we think are particularly useful and also developing our own bespoke material to help provide some guidance in this area. The centre will continue to grow and develop over the course of 2011 to support advisers in the build up to the RDR, however our aim is to keep things simple, engaging and informative.”