Treasury select committee chair Andrew Tyrie has raised concerns that the advice gap resulting from the RDR poses a risk of consumer detriment.
Speaking at the Apfa annual dinner in London last week, Tyrie said there is “now a risk, possibly a considerable risk, of consumer detriment” as a result of the “marked” reduction in adviser numbers and the number of providers which have left the advice market since the RDR.
But he said it is too early for the Treasury select committee to review the RDR’s impact.
He said the committee recommended the FCA carry out regular reports on levels of saving and adviser numbers following the introduction of the RDR, and intends to hold the regulator to that.
But Tyrie said: “Should the TSC restart the investigation? Not now.
“The RDR has only been going for a year, and it will take at least two years for the full impact of the changes to work through the profession.”
Tyrie also hit out at the regulator for relying too heavily on “mindless data collection”.
He said: “We have far too much box ticking and mindless data collection and absence of the use of judgment by regulators in demanding information from the regulated community, with the view to regulators minding their backs.
“That really has to end. We have to have more intelligent reporting requirements.”
Pilot Financial Planning director Ian Thomas says: “The RDR will take several years to work its way through the system before we can judge whether or not it has been a success. When that point comes, it is good to know the TSC will be able to hold the regulator to account.”