Research from Defaqto also found that 81% of advisers believed it would be beneficial if they were provided with educational materials to help get the message across to clients.
Not one of Defaqto's survey respondents believed the general public was aware of the Retail Distribution Review and fully understood the implications it will have for financial advice.
In fact 80% of advisers felt that the public know nothing about the RDR at all.
Defacto said firms had six key areas to focus on in the run up to implementation including whether to offer independent or restricted advice, or both; how to segment their clients; making the transition to fees and the service proposition they will offer to ensure clients recognise what they get in return for paying for advice; whether they will outsource investment decision-making and/or administration; qualifications and professionalism; and how they will communicate their post-2012 service offering to clients.
Fraser Donaldson, Defaqto’s insight analyst for funds, said: “While the RDR is going to have a significant impact on advisory firms and their appointed representatives, the need to undergo a change in business model and service proposition, along with a fundamental change the way advisers are remunerated, is also likely to have a major impact on clients.
“It would be sensible for advisers to start communicating with their clients as soon as possible so that they get used to the forthcoming changes.
“With something as fundamental as adviser charging, some market research with clients on preferred payment methods and level of payment they are likely to accept may be advisable, as a sudden change in charges could cause additional problems.
“Generally speaking, there will be more of an onus than ever on advisers to sell themselves and their services to clients, to justify the fees they will charge – but this is also a potential opportunity for advisers to engage with clients and differentiate themselves.”
