Under half of UK advisors believe that the regulator’s Retail Distribution Review package of reforms will raise the standard of financial advice clients receive, according to the latest Adviser Confidence Barometer from Skandia. 

While 43 per cent of respondents foresaw improvements, nearly a third (29 per cent) predict the RDR will have no appreciable impact on the quality of advice that clients get. More strikingly, a further 29 per cent believe the RDR will actually have a negative impact.

Looking at those who believe the RDR will raise standards of investment advice, 19 per cent thought that the ban on commission would be the main driver behind the improvements. However, the vast majority, 73 per cent, singled out new mandatory qualification standards; post-January 2013, all advisors will have to be QCA Level 4 qualified, rising from Level 3.

In other findings, Skandia’s research revealed that while independent financial advice will continue to dominate the industry, restricted advice will have a pretty significant role to play going forward. Post-RDR, 84 per cent of advisors said they plan to stay independent, but 11 per cent are opting for the “restricted” label. Looking at this group more closely, 8 per cent of these respondents intend to provide restricted advice in addition to their existing independent advice offering, while 3 per cent will make a wholesale move to offering just restricted advice.

Some 6 per cent of those included in the survey say they are going to exit the industry before the RDR comes into force. However, the percentage who said that the reforms had effectively forced them out of the industry was slightly lower at 4 per cent.