According to the research, 65% of the advisers are planning to increase their use of model portfolios following the implementation of the RDR and 53% of advisers are also looking to increase their use of risk rated funds.

Further, 44% of advisers are looking forward to use multi-asset funds and 42% advisers are looking forward to use multi-manager funds as a result of the RDR, whereas just 35% of advisers are looking to increase their usage of bespoke portfolios after the RDR.

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It has also been shown that in spite of cost factor being an important consideration for advisers, 57% of the advisers does not feel the need to adopt a lower-cost strategy and seek cheaper funds for clients due to the regulatory changes.

And of the 57%, the most popular fund option was low cost actively managed funds, with two thirds (66%) of advisers considering this as an option, followed by passive funds which half (51%) of advisers were considering as a solution.

Only 19% of advisers were considering ETFs as a low cost fund option, which indicated that ETFs remain a niche low cost option with limited demand.

 

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