Sesame Bankhall Group says 40 per cent of advice firms that left the network in 2010 did so as a direct result of the RDR.
The group’s submission to the Treasury select committee’s RDR consultation says: “While the overall number of adviser firms in Sesame’s network remained stable in 2010, taking into account joiners and leavers, it is noticeable that, of the firms that did leave, 40 per cent said it was a direct result of the RDR.”
Sesame Bankhall says this, along with the FSA’s own prediction that 25 per cent of advisers will leave the market after RDR, are evidence that at least one of the review’s original objectives will not be met.
It says: “Instead of the FSA delivering on its original objectives, including widening consumer access to fin- ancial advice, we have RDR proposals that will reduce access, reduce the number of advisers and cost the ind- ustry £1.7bn.”
Sesame says it supports the drive to higher professional standards and greater transparency but the net result of the RDR is likely to be detrimental to consumers.
It says: “Financial advice will become the preserve of the very wealthy. The mass market will find itself underserved or, even worse, not served at all.”