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Advisers believe RDR has had a positive impact on quality of advice says Schroders

Almost six in ten advisers (58%) believe the Retail Distribution Review (RDR) has had a positive impact on the overall quality of advice with the majority stating that the most positive effect has been on transparency and clarity of fees, according to a new survey from Schroders.

The annual ‘Schroders Adviser Survey’, which surveyed 575 UK advisers, also revealed that advisers believe RDR has helped to increase professionalism and awareness of adviser value.

Just under two tenths (18%) of advisers said they felt RDR hasn't had a positive impact on the overall quality of financial advice. Advisers identified increased administration and regulation, increased costs and the growing ‘advice gap’ for low/middle net worth individuals as some of the least positive impacts of RDR.

In addition the survey shows that outsourcing of portfolio management is continuing to grow as we see more advisers concentrating on providing holistic financial advisory services to clients. 55% of advisers, who already outsource, are increasing the proportion of assets they outsource with 88% stating that they will continue to outsource portfolio management next year.

A breakdown showing who advisers are outsourcing client portfolio management to, can be seen below:

Source: Schroders, November 2015

Turning to passive investments, the survey shows that passive usage is starting to stabilise with 66% of advisers using passives for client portfolios and only 19% planning to increase their use of passives in the next year.

Lastly, looking ahead to asset allocation choice for 2016, developed market equities are still seen as the favoured asset class amongst adviser with 9% of advisers saying they would expect to recommend funds in the IA UK Equity Income sector to clients in 2016 and a further 9% saying they would recommend funds in the IA UK All Companies sector.

Commenting on the results Robin Stoakley, Managing Director, UK Intermediary said:

"It is encouraging that advisers believe RDR has had a positive impact on the overall quality of advice, this is the highest approval rating advisers have given the RDR in the history of our survey.

I am also pleased to see that the growth in passive usage is slowing as advisers recognise that active funds are a vital part of the investment mix to deliver on customer aspirations.

Finally, it's good to see the continued trend for advisers passing client assets to professional managers such as Wealth management firms. In these uncertain times for markets, client portfolios need all the help they can get."

For further information, please contact:

Estelle Bibby, Senior PR Manager,  Tel: +44 (0)20 7658 3431/

Notes to Editors

For trade press only.  To view the latest press releases from Schroders visit:

Schroders has been undertaking the UK Adviser Survey on an annual basis for the past 3 years.

Schroders plc

Schroders is a global asset management company with £294.8 billion (EUR 400.0 billion/$446.5 billion) under management as at 30 September 2015.  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 37 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

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