He added: “As RDR approached, there was a scurry to pass the exams, it was a worrying time for many advisers who were genuinely concerned about their livelihood, those who did not succeed, left the industry, or filtered into alternative roles, others, caught up later.”
Rafiq described it as “a new era” where advisers were now faced with the challenge of asking clients for a fee.
He said the lightbulb moment for many advisers was not how they were remunerated for their service, it was the important relationships around trust they built with their clients.
“RDR enabled good advisers to transition into credible and professional firms on par with accountants and solicitors, with many advisers pushing toward Chartered status,” he said.
“The retail distribution review can take some credit for the journey of self-recognition and self-development. Firms have become more client-focused, with a shift from product-driven advice to goals-based, lifestyle financial planning and understanding consumer behaviour.”
With the consumer duty round the corner, Rafiq said advisers are well prepared for it.
“Changes in regulation are not something the adviser community has shied away from; in fact, good firms are always ready to embrace positive change,” he added.
“At the pace of technological innovation, and a client-engaged, outcomes-focused sector, the future looks promising.”
sonia.rach@ft.com
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