We have now launched our second bi-annual industry benchmark report which focuses on the key trends and challenges that retail investment advice firms face.
Model Office-MO® surveyed 135 of its users in December 2019 and then overlaid those responses with actual data from the system over the previous six months.
The system data coupled with the research responses revealed some fascinating trends in the areas of compliance, client engagement, proposition, system usage, administration, and HR.
Key findings from the report include:
- Compliance is still the number one worry for firms (80%) followed by BREXIT (1 in 2 firms concerned on key areas such as impact on client relationship/legals/data mgmnt) time management on verses in business (55% time spent on business) and client/staff development needs
- Four out of five firms confident in business model robustness and client value for advice
- One in three firms prefer 1.5% up front and 1% pa, advice fees becoming more client-centred but a new charge model is required at de-accumulation stage with 56% preferring Ad Valorem charging
- Advice tech is on the up across cash flow, research tools, client portals and RegTech with three out of four firms using such tech and one in two open to using RegTech
- Data quality is still an issue with 3 out of five firms unsure on quality of their data and practice management tech is widely adopted
- Human Resource Development (HRD) is now a compliance function thanks to the Senior Managers and Certificate Regime but over two in four firm’s unconfident they have robust HR processes in place
The report explores the most important issues, recognises where improvements have been made, highlights areas that will need to be addressed, and provides some practical suggestions for managing risks.
You can download your copy of the report here.
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