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Categories:Advisers,Regulation

FSA: Over 70% of advisers are RDR qualified

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Research from the FSA suggests over 70 per cent of advisers have already obtained an RDR appropriate qualification.

Speaking at an FT Intermediary Forum event in London yesterday, FSA head of investments Linda Woodall (pictured) revealed the results of the latest research carried out by the regulator to assess firms’ RDR readiness.

Out of 3,897 firms that responded to the FSA’s survey, 71 per cent say they are already RDR qualified, with a further 22 per cent studying.

A further 69 per cent of firms say they have developed and begun to implement a plan to be RDR compliant across all the requirements. The same proportion of firms told the FSA they have begun to tell their clients, or have told their clients, about changes under the RDR.

However the FSA notes that smaller firms are ahead in communicating the RDR changes to clients, with only 36 per cent of larger firms having done so.

The regulator has identified gap fill as a “weaker area” of RDR progress. Although 67 per cent of advisers need to gap fill, to date 39 per cent have completed it while 42 per cent are in the process of doing so and 19 per cent are yet to start.

Woodall said the number of firms who have yet to start implementing an adviser charging model “remains a big concern”.

The FSA’s survey found that 59 per cent of firms are relying on an adviser charging model, but among larger firms the figure drops to 32 per cent.

Woodall said the FSA is stepping up its assessment of firms’ RDR readiness, and says more face-to-face time with firms to review progress will be an “important part” of the regulator’s work this year.

She said: “We are visiting the larger firms whose business models are more complicated, such as banks, building societies, insurers and networks to make sure they will be ready.

“RDR implementation will appear on the agenda for our supervisory meetings, for both small and larger firms, to ensure that the market as a whole is moving together towards practical solutions that will lead to the best overall outcomes.”

Woodall said the FSA has held briefings with larger firms to discuss specific RDR implementation risks, such as life offices being able to provide RDR compliant products, and networks ensuring their appointed representatives meet the RDR requirements.

She said the regulator itself has also been working to communicate the RDR to consumers with a leaflet advisers can give to existing clients and by speaking to consumer groups.

 

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Readers' comments (41)

  • Complete and utter tosh!

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  • What do you want to bet Nic Cicutti likes the FSA leaflet ?

    I have never seen so bland and uninformative piece of twaddle.

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  • And Linda Woodall has what qualifications ?

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  • Thats a constructive and well thought out comment hugh. I was wondering what the classification of a small firm is? I understand the need to deal directly with the larger firms due to the market impact but are the smaller firms going to be limited to roadshows?

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  • So when does she start her exams, I wonder?

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  • Let's be honest here, when did you ever know the FSA to be right or tell the trurh.

    More like 70% ain't dooing it....

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  • But how many of those 70% have since come to the conclusion that there is no future in being an IFA. I suspect a fair proportion.

    It's time to get out.

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  • And what exactly does that mean to both the quality of advice to the consumer and will this stop people being given bad advice or products failing?

    Answers on a postcard to the FSA !!

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  • There you go! A questionnaire is sent out, and data is selectively publicised to suit/endorse the agenda for RDR.

    Quote 'Woodall said the number of firms who have yet to start implementing an adviser charging model “remains a big concern”...I wonder why that is? Perhaps the FSA may want to ask themselves that very question, although I suspect that they know why, but are choosing not to listen!!

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  • I have no idea who they 'surveyed'. I know of several IFAs who intend to stay in the industry who have not even started studying yet !!!No body I know is fuly qualified yet, including me. I think this is the FSA and their CII cronies trying to talk up the market.

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