So,
will the RDR result in a major fall out in the industry? Are the demands for
information transparency required to build trust and client confidence likely
to result in massive consolidation by creating cost to serve that is simply
unsustainable for smaller organisations in what will become a far more cost
sensitive and competitive marketplace? Or could the RDR be an opportunity for
switched on IFAs to drive through cultural change and exploit real time access
to client information delivered by Document Management Systems (DMS) to reduce
costs, automate RDR compliance and, critically, improve competitive position.
It is,
of course, possible to meet the information retention requirements laid down by
the FSA with a manual approach and strong processes for the storing of both
paper based and electronic information, but it is hardly effective. And it is
impossible to deliver the level of service that will be required when staff are
spending so much of their working day simply searching for client information.
The
only way that IFAs are going to be able to survive and compete in the new
regulatory climate will be through far more effective and automated information
storage and retrieval processes. Whilst growing volumes of client information
are now provided via email – both secure and insecure – email remains unmanaged
within the majority of IFA Businesses.
If the
industry is to avoid major consolidation and widespread loss of individual
IFAs, there is a need to achieve compliance to RDR without incurring an
unsustainable operational overhead. More critically, IFAs need to change
working practices to create a cost effective and competitive business model
that improves productivity and minimises the administrative requirement. Organisations that leverage DMS to store and
retain all client information in a single, searchable resource will not only
achieve RDR compliance but also reduce costs and create a far more scalable
business model in an increasingly cost sensitive market.
