Tories want RDR change of emphasis
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The Conservatives have questioned whether the 2012 ret- ail distribution review time-table is practicable and suggest there should be more emphasis on experience and on-the-job training.
At the Aifa annual dinner last week at Plaisterers’ Hall in London, Shadow pensions minister Nigel Waterson said he understood the changes forced on the industry by the retail distribution review are of huge concern to advisers.
He read out a letter he had received from an IFA in his constituency who was concerned the RDR would lead to fewer people getting advice, advice becoming more expensive and the mid-market being left to the banks. “I think that is the authentic voice of the sole practitioner IFA,” said Waterson.
He said: “On the face of it, given the complexity of the system I have described, it seems fair that a higher level of qual- ification will be required to give out advice.
“No one can object to raising the standards of training and competence but should an emphasis on exams take precedence over on-the-job training and experience? Is the 2012 implementation date practicable given the extra qualifications and changes in systems that will be required?”
Waterson said the two key measures of success from the RDR should be the extent to which the availability of advice and guidance is increased and that it raises the level of consumer engagement with financial services. He also warned that the RDR may conflict with the current European review of retail financial products “leading to a confused message”.
The Tories have previously been careful not to offer much of an opinion on the RDR. In an interview with Money Marketing at the Conservative conference in Manchester this autumn, Shadow Financial Secretary Mark Hoban refused to answer questions about the RDR and said it was a matter for the regulator.
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