RDR: Providers will not monitor adviser charging
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Product providers will not be required to monitor adviser charging under the RDR.
The FSA’s policy statement, published today, says it has changed its stance after strong opposition from the industry.
It states: “We have not gone ahead with the proposal for product providers to monitor the effect on their products of the levels of adviser charges deducted.
“We accept the arguments that product providers should not have full responsibility for determining what is an acceptable adviser charge and, as noted earlier, we have clarified in our Handbook text that adviser firms need to consider whether a client is likely to be able to benefit from the advice given, taking into account the likely adviser charge the client will pay.”
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