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Advisers drive RDR awareness

New research published by Schroders, the global asset manager, reveals that two thirds (66%) of wealthier investors are aware of the changes instituted by the Retail Distribution Review (RDR) , which took effect at the end of 2012.

25/04/2013

  • Two thirds (66%) of serious investors are aware of changes instituted by the Retail Distribution Review 
  • More than four fifths (85%) of investors who consult their financial adviser every three months or six months are aware of the RDR mandated changes 
  • Schroders witnesses investors increasingly seeking financial advice

New research published by Schroders, the global asset manager, reveals that two thirds (66%) of wealthier investors are aware of the changes instituted by the Retail Distribution Review (RDR) , which took effect at the end of 2012. The research, assessing the knowledge of people with investable assets of at least £50,000, reveals that despite recent claims surrounding the implications of RDR and alleged low levels of awareness among consumers, the majority of serious investors are aware of the changes to how financial advice is delivered and paid for.

The high levels of awareness are being driven by advisers themselves. The research shows that investors who regularly consult with advisers have higher levels of awareness of the new regulations than those who invest without professional guidance. Around 85% of investors who consult with their financial adviser, every three months or six months were aware of the RDR regulations. This research highlights that advisers, who were tasked by government regulators with raising awareness of the regulations, have been successful in communicating the implications of RDR to their clients.

The research further reveals significant demand for professional financial guidance. Almost two thirds (62%) of serious investors intend to seek financial advice this year, however this figure rises to more than three quarters (76%) among younger investors, those aged 30-39.

James Rainbow, Head of Marketing UK, Schroders said:

“Despite previous reports, which suggest general awareness of RDR and its implications remains low among consumers, our research demonstrates wealthier investors are aware of the changes.

However some of those with significant investable assets are still getting to grips with RDR and its implications.

“It is clear that advisers have done an excellent job explaining the changes - the majority of investors that use the services of a financial adviser have a better understanding of the impact RDR has on their investments.

“Our research also indicates there is growing demand for financial advice, with a large proportion of investors intending to seek professional guidance this year. Financial advice is a crucial aspect of helping people plan for their long-term financial futures, such as pensions and investments.”

For further information, please contact:

Charlotte Banks

Tel: +44 (0)20 7658 2589/ charlotte.banks@schroders.com

Notes to Editors

Opinium Research conducted online interviews with a sample of 1,031 adults aged 18+ who have more than £50,000 in investable assets, between 12th and 18th February 2013. Surveys were conducted across the country.

For trade press only. To view the latest press releases from Schroders visit: http://ir.schroders.com/media

Schroders plc

Schroders is a global asset management company with £212 billion (EUR 261.3 billion/$344.5 billion) under management as at 31 December 2012. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.

With one of the largest networks of offices of any dedicated asset management company, we operate from 33 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at www.schroders.com.

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.

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Advisers drive RDR awareness 2 pages | 82 kb

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