Distribution remains a major strategic priority for financial services providers. The RDR interim statement makes clear that the industry will move to a simpler distribution landscape with a clear separation between advice and sales and that customer agreed remuneration will become standard.
The proposed changes to the market structure will have a significant impact on the strategic direction of providers' and distributors' business models. There are clear opportunities in the platform market as platforms begin to make progress towards turning a profit. Expanding direct offerings will also appeal to product providers who seek to develop relationships with the consumer. Nevertheless, as the future of tied advice is called into question by the RDR interim statement and as advisers make the painful transition away from old commission structures, there are still challenges for the industry to overcome.
The 2008 conference will come at a critical time for the industry in the aftermath of the FSA's RDR Feedback Statement in November and will bring together the key industry players to discuss and debate the future of distribution in financial services.
