Research and Markets: UK IFAs Report 2012

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/6lq5tl/uk_ifas_2012) has announced the addition of the "UK IFAs 2012" report to their offering.

Advisors will face increasing pressure to become RDR-compliant by the end of 2012. They will need to decipher how they will adapt their business models according to RDR requirements while remaining profitable in the market

Scope

- Analyze the size of IFA market in the UK, including IFA's share in bonds, pensions and protection products

- Gain insight into how RDR will shape the IFA market going forward

- Provides analysis of the key life and pension products, including how the economic climate will affect individual product lines.

Highlights

- The distribution of life and pensions products is heavily weighted among independent financial advisors (IFAs). In 2011 IFAs accounted for 75.4% of the total life and pensions market, while bancassurance accounted for just 9.3%.

- With-profits bonds are the only bond within the market to witness a compound annual growth throughout the period 2007-2011. New business in this market totaled £1.8bn in 2007 and has risen 6.8% over the five year period to £2.3bn in 2011.

Reasons to Purchase

- How are IFAs responding to changes facing them post RDR?

- What products are most popular amongst IFAs and why?

- Which IFAs are increasing their turnover and moving up in the IFA rankings?

Key Topics Covered:

OVERVIEW

EXECUTIVE SUMMARY

Review of 2011

• In 2011 independent financial advisors accounted for 75.4% of new business within the life and pensions market
• In 2011 advisors created £3.2bn in new business through the sale of unit-linked bonds
• The continuing uncertainty in the UK economy led to an increase in demand for with-profits bonds
• The protection market will remain key for IFAs, especially after RDR implementation
• The market for term assurance grew while the dynamics of distribution changed
• IFAs held 76.3% of the group pension market in 2011
• Key regulation changing the IFA landscape- The RDR will have the most profound effect on IFAs, who will have to adapt their business models going forward
• Advisors will hurry to adapt their pricing structures in line with declining consumer willingness to pay post-RDR
• The transition to a fee-based model will need to happen quickly if IFAs are to receive a sustainable income
• In preparation for the RDR advisors are seeking out new opportunities in the protection market
• IFA networks will consolidate as a direct result of pressure from the RDR
• IFA business structures- Sesame remains the largest IFA with turnover of £470m in 2012
• The future IFA market- IFAs will look to grow their presence in the protection market as a result of the RDR

REVIEW OF 2011

KEY REGULATION CHANGING THE IFA LANDSCAPE

• The RDR will have the most profound effect on IFAs, who will have to adapt their business models going forward- To remain profitable advisors will be seeking out new product areas and adapting business models
• The RDR will change the dynamics of the IFA market as advisors seek to become holistic, generalist, or specialist
• Advisors will hurry to adapt their pricing structures in line with declining consumer willingness to pay post-RDR
• The transition to a fee-based model will need to happen quickly if IFAs are to receive a sustainable income
• In preparation for the RDR advisors are seeking out new opportunities in the protection market
• The RDR will have an overall positive impact on the market for life and pensions
• IFA networks will consolidate as a direct result of pressure from the RDR- Without consolidation, networks will find it difficult to attract advisors post-RDR
• Overall, IFA networks that consolidate will provide a value for money service to advisors

IFA BUSINESS STRUCTURES

• The top 20 IFAs accounted for 77.1% of the top 100 IFAs' turnover- Sesame remains the largest IFA with turnover of £470m in 2012
• Succession is now on the way to growth with new acquisitions
• Sesame remains number one in the top 100 IFAs rankings- Sesame is the only IFA to remain in the same position in the IFA rankings between 2008 and 2012
• Changes in the IFA rankings: which IFAs have lost out in recent years?
• Insurance and mortgage business are less popular products among IFAs- All of the top IFAs offer investment business
• There are significant differences in the proportion of fees among IFAs

THE FUTURE IFA MARKET

• Advisors will retain and grow their share of the life and pensions market- IFAs will look to grow their presence in the protection market as a result of the Retail Distribution Review

APPENDIX

For more information visit http://www.researchandmarkets.com/research/6lq5tl/uk_ifas_2012