In November, Aifa pressed for the FSA to drop mandatory RDR requirements for existing advisers to reach new qualifications, insisting IFAs should be encouraged to meet higher professional standards with regulatory incentives.
Policy analyst Julia Cooper says providers should also be offered regulatory dividends for complying with RDR standards. She says: “Providers are busily updating their systems to facilitate adviser-charging by the end of 2012.
“We would welcome a pragmatic approach from the regulator, whereby providers who have made the significant investment necessary to develop their own adviser-charging models by this point could benefit from reduced capital requirements, reflecting their reduced risk profile.”
Skandia chief development officer Peter Mann says regulatory dividends are a good idea in principle, but might not be practical in the provider space. He says: “The difficulty is that not all providers start from the same place. It is significantly easier for Skandia to comply with the RDR requirements than some of the other more traditional providers that have acquired other firms, are more transactional and do not operate on a platform.”