The boss of an island life insurance company says businesses realise regulatory change is on the way.

Peter Kenny said: ‘I think everybody now finally realises that change is coming, and that advisory firms have to change their business models in response to new regulations.

‘It’s clear that some firms have embraced it quicker than others, but I’m encouraged by what I see.’

Mr Kenny is managing director of Old Mutual International, King Edward Bay House, King Edward Road.

He was asked about the impact of regulatory change and how that was going to affect the international financial advice marketplace in the coming years.

He said: ‘Based on the work we’re doing with our advisers, we think the vast majority of them have acknowledged and accepted that they must change.

‘That’s the most important point, but they must also understand that they are going to have to put a little bit more time and effort into the asset choice, that is the question of where they place their clients’ investment, and make sure that it’s appropriate for retail customers as opposed to institutional customers.

‘Advisory firms must also understand how to disclose commission to their customers, and how best to explain their value in the advice process.

‘Finally, they’re going to need to ensure that their business is appropriately licensed and appropriately regulated in their home jurisdiction.

‘These are big changes for advisory businesses, but from what we have seen so far we think the vast majority have accepted the challenge and will be prepared for the impact of regulatory change.

Meanwhile, Mr Kenny said the year 2018 has so far been a busy one for Old Mutual International, which claims to be the largest life company in the island.

Asked what was the main focus for Old Mutual International for the rest of this year, he said: ‘There are three key areas we’re focusing on: our core markets; high net worth; and, of course, regulatory change. While the high net worth space is not new to us by any means, it was a particular focus for the business last year and it paid real dividends. It will continue to be a priority for the remainder of this year but in addition to, not instead of, our focus on core markets.

Mr Kenny added the core markets in which the compay operates in today are the UK, Europe, Asia, Middle East, and Latin America.

‘Our aim in the foreseeable future is to continue to develop in these regions, and put down even deeper roots in those markets.’

He also touched upon the managed separation of Old Mutual International’s parent company, Quilter plc, from Old Mutual plc

He said: ‘We’ve got a very exciting year ahead because, of course, our parent company, Quilter plc listed on the London and Johannesburg stock exchanges back in June, which was a key milestone in Old Mutual plc’s managed separation process that started in March 2016.

‘The group businesses will be rebranded to Quilter over approximately two years and there will be no immediate changes for customers.

‘We ourselves are not going to rebrand to Quilter International until probably mid-2019, so there’s a lot of activity going on in and around that work. It’s a very exciting time, but challenging too in the sense that we have to also remain focused on day-to-day business and our core markets.’