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Report: Wealth management services in RDR - A HNW investors perspective

Report Summary

One year after the UK wealth management industry underwent a   radical transformation in the way that advice is paid for, we revisit investor attitudes to RDR and explore exactly how HNW investors feel about paying for advice. Discover more about HNW investors’ perspectives of wealth management services in a RDR world. Visit the Scorpio Partnership for more.

What you need to know in brief:

  • RDR outcomes are understood and broadly welcomed by the UK’s HNW investors.
  • Age in the most significant determinant of investor behaviour.
  • 49% of the HNW clients surveyed identified themselves as self-directed investors, a potentially huge wealth management opportunity.
  • Those with less than £500k in liquid assets should not be left out in the cold. These no-fills investors are searching for wealth management relationships too.
  • 1 in 8 of the UK’s wealthy are likely to seek more financial advice as a result of the Retail Distribution Review.
  • When presented with a range of different payment methods for investment advice, HNWs show a preference for fixed consultation fees alongside transaction or project fees.
  • 75% of UK HNWs believe they are receiving good value for money from their financial providers.
  • HNW clients expect wealth management to be competitive with other parts of the financial industry.

While experiences are positive, sentiment to the wealth management industry remains confused.

Audience

UK wealth managers, banks and independent financial advisors.

Research process

The market research process was based on asking a representative sample of the UK’s wealthy population questions on how they have adapted to the changes brought about by RDR, the relationships they want with financial providers, and how happy they are with the state of their financial affairs.

We surveyed 1,000 wealthy investors:

  • Average wealth of £6.7m
  • 400 had wealth in excess of £5m
  • 301 has investable assets between £500k and £5m
  • 300 interviews with clients whose average wealth was £259k
  • 40% of the sample from London & South East; remainder throughout the UK

The survey was undertaken during November 2013