Advisers do not believe the FSA has done enough to clarify its RDR rules around adviser and consultancy charging, according to research from Avelo.
The financial services technology firm polled 146 advisers in response to the FSA’s consultation paper on RDR adviser charging published in November, which was followed by a policy statement issued in March.
The rules state that where adviser charging is being taken from the product, providers can deduct adviser charges before or after the client’s money is invested.
Out of the advisers polled by Avelo, 69 per cent believed not enough had been done to clarify adviser and consultancy charging. Just 4 per cent felt the rules were now clear.
A further 74 per cent said industry feedback had not been taken into account as part of the consultation process. 21 per cent of respondents said the FSA had listened to feedback, but missed out certain key elements.
Avelo strategy and product development director Paul Yates says: “More has to be done to ensure policies are transparent and easily understood by the industry as a whole and not just its architects. If advisers are not clear, what hope do consumers have of understanding the proposals?”
Writing for Money Marketing, Syndaxi Chartered Financial Planners managing director Robert Reid highlighted some of the problems with the current adviser charging and consulting rules.
In particular, Reid raises the issue of charging for advice as part of pension recommendations and triggering unauthorised withdrawals as a result.
Money Marketing revealed earlier this month that HM Revenue & Customs is preparing to rewrite its consultancy charging guidelines after concerns were raised about members potentially being hit by unauthorised payment charges.