Wealth managers 'unprepared' for RDR

Most wealth managers aren't prepared for the Retail Distribution Review (RDR), according to a survey from JP Morgan.

The report found that just nine per cent of wealth management firms had advisory staff who were fully qualified under current RDR competence requirements, and over a third of firms had fewer than 50 per cent of their staff fully qualified.

Wealth managers, which include both private banks and the wealth management arms of global banks, are facing the prospect of increased business as commission-based firms exit the industry on the back of RDR regulation.

"Most wealth managers have only recently realised how much the RDR impacts them, as many felt that it was mainly an IFA issue," Jasper Berens, JPM's head of UK retail sales said.

He added: "The evidence for this is how many wealth management companies have people well below the competence level of qualifications as set out in the RDR."

The survey also showed that just 26 per cent of wealth managers believe greater cost transparency will encourage more consumers to go direct to discretionary portfolio managers and wealth managers for investment advice.