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Categories:Advisers,Regulation

CII and ABI reject call for RDR delay

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The Chartered Insurance Institute and the Association of British Insurers have argued against the Treasury select committee’s recommendation to delay the RDR by a year, saying such a delay would increase uncertainty and damage momentum.

The TSC published its report into the RDR over the weekend, which called for the implementation of the RDR to be delayed by a year to give advisers extra time to attain the required QCF level 4 qualification.

But the FSA says it remains committed to the existing timetable of January 1, 2013.

CII director of policy and public affairs David Thomson says: “For the advisory community, further delay will serve to increase uncertainty and even undermine the positive momentum that has already built behind the RDR.

“We believe the public is hungry for a financial advice sector that has earned parity of esteem with other professions.”

Thomson cites CII research carried out in June which suggests that 33 per cent of those who do not currently take financial advice would consider doing so once the RDR changes were explained to them.

The ABI also supports the existing timetable for implementing the RDR.

ABI director of life and savings Maggie Craig (pictured) says: “The ABI does not feel a compelling case has been made for a delay on adviser charging.  We hope that the financial adviser community should not need a delay in order to obtain the relevant qualifications. 

“We must all now focus on consumers receiving good quality, affordable advice so the RDR is successful.”

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Readers' comments (32)

  • "We believe the public is hungry for a financial advice sector that has earned parity of esteem with other professions"”
    DRIVEL
    "Thomson cites CII research carried out in June which suggests that 33 per cent of those who do not currently take financial advice would consider doing so once the RDR changes were explained to them".
    UTTER DRIVEL

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  • off course the ABI want it to go ahead its a great cost saving for them, they havn't thought about the drop in business!
    As for the CII - talking rubbish as usual, they really have no idea - or is it they just don't care!

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  • I think they mean that any delay will impact on their sales figures . Anything else is utterly irrelevant.

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  • Why should it be delayed? We have known this has been coming for years. If you are not ready it is your own fault. Bring on RDR as it suits all well run IFA businesses with a correctly established fund based income model. There will be some fantastic opportunities and clients will benefit as we get away from shoddy commissions and under qualified advisers.

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  • THE ABI AND THE CII TWO EXAMPLES OF WHY WE ARE IN THIS MESS

    ABI is a safe house for sub standard providers no longer supported by independent advisers with choice. They see RDR as an opportunity to force the sale of their SUB STANDARD products via tied and restricted advice and hide behind the ABI.

    The CII is an exam machine with its own professional status as its agenda.

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  • The CII, PFS and CISI, have all said they are not involved in the RDR debate, only to providing the neccesary qualifications. Well here we go again Self Interest, conflict of Interest, they have a financial Interest.
    The ABI also has a Financial interest in all the renewal commisions and trial fees that they recieve from orphan clients, as IFA's leave the proffesion to the regulators and banks to destroy.

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  • Did you expect anything else from the CII and AbI.

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  • Hector Sants says "There is reasonably good evidence of the willingness of potential investors to pay fees, but that does correlate with the available amount of money for the investment and clearly at the lower end [...] there is a risk that they would not want to pay"

    Enough said. Give clients a continued choice.

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  • Or put another way perhaps the response from said Institutes/Associations : Please do not delay things as it will severely upset our cash flow forecasts. As for this magincal day when all ills will be removed, one would have to question the sanity of any client doing business now when in only 18 months all the bad boys will have gone away - why take the risk? What do these Institutes and Associations actually bring to the IFA's table??? Twenty plus years in the business and I am still wondering !!

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  • "33 per cent of those who do not currently take financial advice would consider doing so once the RDR changes were explained to them".
    Well, approx. 90% of those who currently take INDEPENDENT advice will not do so, once the RDR changes have been explained to them.
    But this is the plan isn't it?.
    Whats the matter CII, will your bonuses be messed up if the exams are spread over a much needed extra year?
    I thought that the TSC was part of the government and therefore, as elected people, were the ones who made the decisions.
    Silly me. It appears that the facist FSA and their hangers on, still rule the roost.

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