Full Parliamentary RDR debate secured

Backbench MPs have secured a full Parliamentary debate on the RDR.

The office of Conservative MP Harriett Baldwin says the back bench committee agreed yesterday to hold the debate in the next few weeks.

Baldwin and Conservative MP Mark Garnier had an application to hold a full RDR debate rejected last month as the subject had recently been debated in a Westminster Hall debate and Treasury select committee meeting.

At the Westminster Hall debate, a number of backbench MPs expressed concerns that the RDR could lead to an advice gap. Treasury financial secretary Mark Hoban responded by comparing the current IFA qualification to a diploma in shift management from McDonald’s.

Baldwin says: “I really do hope that we will now get the chance to influence the independent statutory regulator to take the right steps now to mitigate the impact of their regulations on the provision of much-needed financial advice.

“The FSA is keen to raise the standards of financial advice but is doing so in a prescriptive and heavy handed way. I share their goal but I fear that requiring even very experienced advisers with unblemished track records to pass exams may have a negative impact on those of my constituents who are financial advisers and will reduce access to independent financial advice for many people.

“At a time when the FSA is being abolished it seems like an appropriate time to debate this issue. IFAs should now write to or visit their own MPs and ask them to speak in the debate on their behalf.”

Garnier says: “IFAs across the country have been calling for a debate on this for years, yet throughout the whole process of RDR, there has been just 30 minutes of debate on this important subject. IFAs are an incredibly important asset when striving to improve savings and pensions, and it is important that they get their time in Parliament.”