RDR CP: Aifa says RDR offers IFAs opportunity to demonstrate value
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Aifa director general Chris Cummings says: “FSA’s Consultation Paper is a positive and considered response that will benefit consumers, and allow the development of the wider industry and IFA profession.
“There is now a real opportunity for IFAs to demonstrate the value of independent advice to consumers. Firms must take advantage of the distinction the RDR has made between those who are on the side of the consumer and those who represent a product provider.”
In particular, Aifa has welcomed the RDR’s proposals for a separation between independent and restricted advice.
Cummings says: “A separation of the market will provide real benefit to consumers. The FSA has rightly refocused the review on the needs of the consumer with the proposals offering real clarity, creating clear blue water between those offering truly independent advice and those offering restricted advice from a limited range of products and providers.”
However, Aifa has also urged caution over the cost of proposals. It says the additional costs, both monetary and time, required to fulfill the RDR requirements are substantial and should not be underestimated, or minimised.
Cummings has welcomed the introduction of adviser charging across the market, which he says will provide a level playing field in the market.
He says: “The proposals will allow firms to be clear about what they are offering to their clients, underlining the positive long-term relationships many IFAs have with them.”
Aifa says it supports the move to QCA level 4 competence assessment. Cummings says: “The decision to allow a form of work based ‘alternative’ assessments, up to 2012, will mean existing advisers will not be forced from the industry. We are pleased that FSA has listened to our concerns and we will continue to work with FSA on this important aspect of the proposals.
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Readers' comments (1)
Steven Phillips | 25 Jun 2009 7:17 pm
FSA Proposals Re RDR
Clients are happy for me to take commission and where possible rebate commission to enhance investment. Fees whether from the product ie factory gate products (where it is taken from the investment amount) or direct from the client and no commission payable will upset a lot of clients. What planet are the FSA from if they think altering how we get paid will guarantee perfect advice ? I would also like to know how memory tests which exams are, make me a more competant adviser. Please let me meet those in the FSA TO ENABLE ME TO EXPLAIN HOW THINGS WORK IN THE REAL WORLD.....
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