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Advisers: MiFID II creating the headaches, not robots

Advisers see MiFID II as a headache, but there’s no sweat about robo-advice.

That’s the conclusion of a new industry survey from Intelliflo.

It discovered that the top two headaches for advisers during 2017 were MiFID II and the General Data Protection Regulation (GDPR). Regarded as less of a problem was robo-advice, merging with another firm and selling their business.

Top opportunities were seen as Pension freedoms and existing clients recommending new clients.

Those completing the survey were asked to rank a number of issues that have been the biggest challenges for their businesses during 2017.

They replied:

  1. MiFID II
  2. GDPR
  3. Cyber security
  4. Recruiting staff
  5. Robo advice
  6. Merging with another firm
  7. Selling your business

Asked to rank a number of issues that presented the biggest opportunities for business in 2017, the results showed:

  1. Pension freedoms
  2. Existing clients recommending new clients
  3. Staff expansion
  4. Robo advice
  5. Merging with another firm
  6. Selling your business

Executive Chairman at Intelliflo Nick Eatock said: “It’s interesting that robo advice ranks slightly higher as an opportunity rather than a challenge during 2017 in the survey. It’s a good sign that advisers realise they don’t have to be left out in the cold when it comes to offering a robo advice solution themselves and that doing so is a way to build more business in a profitable way.”

Looking ahead to 2018, the survey asked respondents to rank what they see as the biggest challenges for the business over the next 12 months. The results showed:

  1. Complying with MiFID II
  2. Being ready for GDPR by May 2018
  3. Cyber security
  4. Recruiting staff
  5. Robo advice
  6. Preparing for Brexit

Asked what, during 2018, they see as the biggest opportunities for business, the results showed:

  1. Growing the business through existing clients recommending new clients
  2. Pension freedoms
  3. Robo advice
  4. Recruiting staff
  5. Growing the business through acquisition
  6. Merging with another firm

Chief Operating Officer at Intelliflo Rob Walton added: “Although MiFID II comes into effect at the start of the year, our survey reveals the concerns advisers have about being fully compliant with it. It also shows there is anxiety around being ready for the GDPR, something that is borne out by the work we are doing with the industry working group we’ve set up to look at the GDPR and what advisers need to be doing. The good thing is advisers are waking up to the fact that the GDPR cannot be ignored and action must be taken sooner rather than later to be compliant with the new rules.”