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£25m RDR TV campaign needed, says Hobbs

Richard Hobbs

Changes being brought in by the retail distribution review are so significant there should be a multi-million pound awareness campaign including television adverts, according to Lansons director of regulatory consulting Richard Hobbs.

Speaking at a PanaceaIFA event in London this morning, Hobbs said the FSA’s approach so far to consumer awareness of the RDR has been “insipid”. He called for TV advertising akin to the “tell Sid” campaign run by the Government in the 1980s when it sold off shares in nationalised industries.

He said: “In that case the Government was anxious to sell its shares in nationalised industries so £25m was found for a TV campaign but here all we have actually got is a little leaflet. In terms of significance and impact you really need something like a £25m TV advertising campaign. Advisers are not going to pay for it and the FSA certainly are not so there is a very significant mismatch between what is really needed and what we are doing.”

He highlighted claims from the regulator that it would be doing more to boost awareness beyond the two-page leaflet for consumers it has already released. He quoted a speech from FSA head of investments department Lind Woodall which said “this is just the beginning of our efforts to make consumers aware of what is changing”.

He said: “I do not care for that paragraph. If you ask them they cannot tell you what else they will do. The MAS will update its website soon with some stuff on the RDR but they are very busy defending themselves from the Treasury select committee. So what you have is a very insipid approach.”

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Comments

There are 12 comments at the moment, we would love to hear your opinion too.

  1. Ask MAS to do it they have lots of money

  2. Another £25 million pounds to tell the public about something that they are not really interested in. The majority just want to know whats it going to cost me and what are the benefits. If you tell them you are going to have to give an IFA a cheque instead of the cost being drip fed, they will tell you to get lost. I am not talking about people who have plenty of money but those masses out their that all the theorists have forgotten about and theMAS will not help them

  3. @ Nick

    Yes ask MAS they have lots of “our” money !!
    If they need more they only have to take it !!

  4. I agree with Nick. Stop those silly MAS cartoon TV ads that may have cost over £25 million and educate consumers that if they are not fee tolerant they should seek financial advice now before RDR hits.

  5. My solution wouldn’t cost anything and it would create loads of jobs. Ditch RDR!

  6. At least clients will know for sure who is responsible for this mess. I just want to scream when I think about the destruction being wrought on this industry by fools. We need a voice that people will take notice of.

  7. Yes ! an advertising campaign which can be used as the final nail in the coffin to slander IFAs and talk about greedy commission hungry salesmen. Of course any such advertising will neglect to tell the general public that Sants and his cronies are all being paid fabulous salaries and pensions and bonuses and that the FSA has caused massive future increases in costs for investors and delivered absolutely nothing of value in return (unless you consider a banking crisis, a trebling of house prices and a mountain of paperwork and red tape for even the simplest of transactions, to be valuable improvements).

  8. I think it would be more appropriate to let the general public know that contrary to popular opinion, advice from banks is NOT free.

    It will, of course, never happen.

  9. Why not use this money to give everybody who needs financial advice a ‘credit note; to be cashed in once they have seen an IFA and they have received their bill.
    This would be an incentive to find an IFA under RDR,and to get advice that will be of value.
    £25 million squid-at £50 an hour,with a typical 10 ours of advice would mean that 50,000 get advice for free,and learn quickly how RDR works.

  10. Where do people get such stupid ideas as this?
    Dont they know what is going on in the real world?
    Mr Hobbs,if you are reading this-don’t open your mouth until you think it through carefully!!!
    You will see what a silly idea this is,taking into consideration this will go with all the other barmy ideas being offered.

  11. Yes, let’s spend more client money on something stupid.

    When are these people going to realise that a ‘good idea’ is like peeing down one’s leg — to oneself it’s red hot but nobody else knows or cares.

    Heroes led by donkeys.

    Larry

  12. Only someone in Mr Hobbs role could come up with something as ridiculous as this.

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