More than four in 10 advisers believe the Retail Distribution Review has improved the quality of advice they give clients, new research shows.
A survey by Investec Wealth & Investment revealed that only 5 per cent of intermediaries think the new regime has had a negative effect as RDR approaches its first anniversary.
Most advisers think it has 'improved' or 'significantly improved' their levels of knowledge about the investment sector, the study shows, with 59 per cent taking this view.
The top concern, however, was costs and maintaining profitability levels. The next biggest worry was the expense of professional indemnity insurance, followed by the transition from a commission to a fee-based approach.
The 159 intermediaries, who were surveyed this month, ranked passing QCF Level 4 as the fifth biggest challenge.
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Mark Stevens, head of intermediary services, Investec Wealth & Investment, said: "This research strongly indicates that advisers are positive about the impact RDR has had on the industry; many are now better qualified, more knowledgeable and their clients have benefited as a result.
"One year on, the overriding challenge posed by RDR has been the financial costs involved with transforming their business models and the impact this had had on their profitability. This has translated into consolidating and in some cases reducing client bases in favour of driving profitability. We expect that over 2014 the focus will shift back to growing their businesses."
The research also underlined the role RDR has played in the continued growth in popularity of partnering discretionary fund managers.
It found 23 per cent have already increased or plan to increase the number of client portfolios outsourced to DFMs compared to just three per cent who plan to reduce the number.
And 53 per cent of respondents believe increasing numbers of advisers are now outsourcing to DFMs and 37 per cent think that bespoke portfolio options are most commonly selected compared to 24 per cent who favour other models.