Advisers expect that an increased focus on efficiency will be the biggest outcome of the Future of Financial Advice (FoFA) reforms, a survey conducted by Zurich has found.
The majority of those surveyed (40%) said the single biggest change the reforms would force on their business was the need to be more efficient. This was compared with around 20% who believed FoFA would lead to an increase in the transparency of fees, or to a change to their advice value proposition.
Following on from this finding, over half of advisers surveyed believed that business efficiency would come through the increased use of technology. In particular, mobile technologies, such as smart phones and tablets, were identified as being very important in terms of driving efficiencies.
General Manager Retail Life and Investments, Philip Kewin, said the results represented a new way of thinking about the likely legacy of FoFA.
“Most of the commentary and research to date has been about being FoFA-ready. We think these findings really show a different way of looking at FoFA and its future impact; and that is, examining how advisers are using this as an opportunity to improve the way their business operates.”
Mr Kewin said the gap between the cost of providing quality advice and the price consumers were willing to pay for it was well-documented, and that it was likely that FoFA would add more cost pressures to advisers.
“Enhancing the efficiency with which advice can be delivered is not just about cost containment it’s about value; the value advisers offer to their clients and the value they are able to capture for their business”.
