This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+201114+Cover+Small
Categories:Advisers,Regulation

FSA publishes RDR progress guide for advisers

  • Print
  • Comments (12)

The FSA has produced a guide for advisers to help them track their progress in meeting the RDR requirements in time for the December 31, 2012 deadline.

The guide, ‘RDR - Is your firm on track?’, was published on the FSA’s website last week.

Advisers are encouraged to consider how they are going to meet the RDR professionalism standards including  reaching QCF level four or completing any gap fill.

The FSA recommends that firms build in enough time to pass the relevant qualifications including time for re-sits.

It also suggests firms ensure they have a robust system in place to identify any advisers who continue to give advice when not appropriately qualified.

The guide also refers to choosing to offer an independent or restricted service, and reminds firms “just because a firm is ‘independent’ now does not mean it will meet the new RDR definition of independent.”

On fees and business models, the FSA recommends that firms should build a charging model that supports the advice service but remains fair to clients, and that firms should consider the systems necessary to collect charges, be able to explain new charges to clients and what the charges are paying for.

The regulator recommends advisers seek help from local business groups or accountants and solicitors if they need help developing their fee-based model.

It also suggests firms wanting to offer independent advice should “talk to their professional indemnity insurer at an early stage to ensure cover will be available for all retail investment products.”

The FSA says: “This guide is designed to help you implement the requirements of our RDR in your firm. It asks some key questions that you can use to check progress, identify any gaps, and prioritise and plan your next steps.

“For some of you, implementing the RDR may mean a fundamental change in business model, while for others, the change may be less pronounced. But almost all firms will have at least some adjustments to make to comply with the new RDR rules.

“Whatever your circumstances, this guide should help you in your journey towards full implementation.”

  • Print
  • Comments (12)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Readers' comments (12)

  • "The regulator recommends advisers seek help from local business groups or accountants and solicitors if they need help developing their fee-based model"
    Unlike the FSA, advisers do not have unlimited funds to call in outside agencies to do their work for them.

    Unsuitable or offensive? Report this comment

  • An interesting document from the FSA. Nice of them to be helpful, even though the layout suggests they think they are dealing with people who are not too bright. Since they expect professionalism in 10 months time it may be an indicator to in-house schizophrenia.
    One question that I did enjoy was "How much will your clients be willing to pay and how much can they afford?" Apart from the standard "if they can't afford to pay my fees they should look elsewhere", one could also read the question as "How much can I sting my clients for - its FSA approved".
    Having worked in an accountancy firm for a number of years the normal position is that clients are "willing" to pay a lot less than they are charged. So the strategy is "How much extra do we put on the invoice, so that when they complain we can provide a discount for that "special" client that brings the figures down to what it would have been in the first place.
    Not treating clients fairly? They are hardly likely to be treated fairly if you go broke chasing unpaid fees.
    This is yet another area in which the cloistered monks of Canary Wharf are out of touch with real life.

    Unsuitable or offensive? Report this comment

  • I don't know what all the fuss is about, my clients have all agreed it is in their interests to pay me a fee each month for the next 10 months to cover the cost of my exams, lost income, a locum, FSA fees, FSCS fees and PII costs whilst I take the time off to prepare myself to do exactly what I already do.

    Unsuitable or offensive? Report this comment

  • They, the FSA, determine we should all be fee based, yet if we want help to develop a structure we have to seek help from Solicitors and Accountants!
    Also a bit late to produce a guide to help us with the changes, been asking for guidance for years and always met with a shrug of the shoulders.

    Unsuitable or offensive? Report this comment

  • Lovely when people who have no ethos about how to derive an income from direct customer sales/advice (unless you consider that compulsion and thus regulatory fees count in some way!) are so capable of providing guidance as to how a business should run and whom to approach if you need help.

    I had a bank manager like that, thought he had all the answers until they made him redundant. You know what? He's still out of work!

    You've made our bed for us! If it works then well done you. If it doesn't then you know who to blame.

    I may not appear to be embracing the spirit of RDR, but after all, my views were never really heard and it was a decision by which I am having to abide; but I know right from wrong and sorry, but this is wrong!

    Unsuitable or offensive? Report this comment

  • If I'd wanted advice as to how to make the changeover from the F rank S pencer A cademy
    I would have asked.

    But to be honest I'd rather put my hand in a baconslicer than take any tips on running a business from those buffoons.

    Unsuitable or offensive? Report this comment

  • Agog to discover what pearls of wisdom were emanating from the FSA, I tried several times to access the guide. Each time, an icon appeared, advising that "This page is broken and cannot be repaired"!

    Par for the course?!

    Unsuitable or offensive? Report this comment

  • .........but we still have to do it............!!

    Unsuitable or offensive? Report this comment

  • How would we manage without thier pearls of wisdom ?

    Unsuitable or offensive? Report this comment

  • A classic case of Mushroom Management - keep 'em in the dark and pour sh1t all over them.

    Unsuitable or offensive? Report this comment

View results 10 per page | 20 per page

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

The Budget: What do people really know?


Fund Data

Editor's Pick



Poll

Do you think the idea of a single investment management charge could work in practice?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments