The UK wealth management industry is currently wrangling
with the implications of the Retail Distribution Review (RDR) that
demands a high level of skill to advise clients on their
investments.
Banks are at varying levels
of preparedness, with some arguing that it is still not in the best
interests of clients. Training is a heavy drag on resources. The
average cost of training a banker is about £2,000 ($3,134), let
alone the cost of lost productivity.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
“It is time for the UK
industry to be two steps ahead in terms of adopting higher
standards in professionalism and transparency,” says David Semaya,
head of UK and Ireland private bank, Barclays Wealth.
Semaya, who trained in the US
and worked extensively in Asia with Barclays Global Investors, says
the UK’s qualification process could be considered quite
challenging given the complexity and variety of the wealth
management sector in the UK.
Barclays Wealth has
subsequently poured large amounts of time and resources to ensure
bankers, who are qualified through different training providers,
meet the acceptable standard for RDR. At present, about 95% of its
UK staff are actively training for the RDR as Barclays looks to
implement FSA requirements one year in advance of the required
deadline.
“The RDR is a real inflection
point for the industry and I think the most important message that
needs to get through is to understand fiduciary responsibility and
demonstrate integrity,” he says.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe cost of direct training
for the RDR at Barclays Wealth is estimated to be in the hundreds
of thousands of pounds. There is also the impact on resource as a
certain amount of time is allocated for staff to focus on training
and prepare for the exams.
“We look at that as an investment and if it will help give
better advice to clients then that is a positive. We’re well
equipped to deal with the challenges and have the scale and
resource to deliver on our objectives” says Semaya.
