Most advisors are positive about how the set of UK regulatory changes aimed at improving standards of financial advice has panned out, according to a new survey.

Almost six in ten advisors in the UK believe the Retail Distribution Review has boosted the overall quality of financial advice amid greater transparency and clarity of fees, according to research from Schroders.

Meanwhile, others flagged increased administration and regulation, increased costs and a widening "advice gap" for low/middle net worth individuals as unwanted consequences of the RDR. Overall, 18 per cent said the review has not had a positive impact on the quality of advice, according to the survey of 575 UK financial advisors.

The findings come two years after the RDR came into force, requiring financial advisors to charge their clients upfront fees rather than accepting sales commissions from product providers.

Indeed, the post-RDR world has led to a wave of consolidation in the independent financial advisor market as smaller IFAs have struggled to deal with rising regulatory costs.

However, Chris Hannant, director general of the Association of Professional Financial Advisers, told WealthBriefing that the effects were on the whole positive now that the spotlight is on advisor value. 

“Although there has been a lot of merger and acquisition activity in the advisory market, the number of firms has remained broadly consistent,” Hannant said. “The Retail Distribution Review has pushed IFAs to look more closely at their business proposition and prioritise value for money for clients.” 

“Firms have also been more ruthless about who to provide their services to, opting to focus on those with significantly more assets under management.”

The research highlighted a trend of advisors passing client assets to professional managers such as wealth management firms as they concentrate their efforts on holistic financial advisory services. Around 55 per cent of advisors who already outsource are increasing the proportion of assets they outsource, with 88 per cent stating they will continue to outsource portfolio management next year.

“In these uncertain times for markets, client portfolios need all the help they can get,” said Schroders' managing director, UK intermediary, Robin Stoakley.