More than two thirds of professional advisers (67%) say increasing regulation and changes in the regulatory environment are keeping them up at night, according to research carried out among advisers by Canada Life.
The third annual survey of advisers from Canada Life revealed that when asked about Packaged Retail and Insurance-based Investment Products (PRIIPs) legislation and Key Information Documents, 44% said they are aware of them but do not yet fully understand them, and nearly a third (29%) claim to have not heard of them before. Further to this, 68% think the Financial Services Compensation Scheme (FSCS) needs reviewing and updating.
Robo-advice is definitely not keeping advisers up at night when thinking about potential challenges for the future of their business. Just 4% class robo-advice as a threat to their firm and whilst 62% think it will happen the impact on their business will be negligible.
Brexit also features as negotiations continue, with 38% saying their clients have been left confused by the UK’s imminent departure from the EU, leading 36% to look more at overseas opportunities to invest.
Looking to what will keep advisers busy in the next 6-12 months, the impact of pensions freedoms will continue to be felt with many predicting the key need for financial planning for clients will focus on retirement. This includes planning both for those who have already retired and those below retirement age planning for retirement.
Richard Priestley, Executive Director at Canada Life, said:
“Advisers are on the front line of change and so it is no surprise regulation is keeping them awake at night. The challenge remains for advisers to navigate this complex ever changing landscape when providing advice. We feel it is therefore crucial providers are on hand to support advisers with the technical guidance they need to ease them through this process and offer clarity and reassurance to their clients."
“As the research shows pension reforms continue to impact financial planning needs, and the demand for clear, straightforward pension advice remains apparent. With the qualifying age for the state pension on an upward curve, and pension freedom giving retirees more choice than ever before, many people will be uncertain what their options are. Talking with a financial adviser is a key first stop for those interested in securing their future.”
Canada Life offers a number of products that can help people with their retirement strategy, including the CanRetire Lifetime Annuity and Scheme Pension which provides a guaranteed income for life. These annuities can be purchased from savings accrued within a UK registered pension arrangement.