The future for the UK IFA industry is brightening, with nine out of ten advisors reporting having seen some level of recovery in their business, a new survey by AXA Wealth has found.

The survey additionally found that two-thirds of IFAs have more confidence in both the market and their own businesses than they did six months ago.

The picture was not universally bright however, with seven out of ten IFAs predicting that the recovery with be “slow and protracted.”

Along with capital adequacy, 57 per cent of the IFAs surveyed also highlighted the new qualification requirements coming under the UK regulator’s Retail Distribution Review as their biggest concern.

Under the RDR, which is due to be implemented at the end of 2012, advisors will have to be qualified at QCA Level 4 – the equivalent of undergraduate level – prompting concerns that experienced advisors may leave the industry rather than return to study.

Despite such concerns, Mike Kellard, the chief executive of AXA Wealth, is unequivocally positive about the RDR and is confident that its programme of reforms will create “a golden age for independent financial advice.” However, he cautions that advisors need to face up to the challenges associated with RDR-compliance.

"Before the industry is in a position to take advantage of the market opportunities it must face the fact that the business model needs to be changed. RDR will break the current model and those IFAs and providers who respond the fastest will be those who create the greatest share of value in the future,” Mr Kellard said.