The Association of Private Client Investment Managers and Stockbrokers has blasted the “messy” RDR for not including grandfathering measures for advisers.
Speaking to Prospect and the London Stock Exchange today, Apcims chief executive Tim May said he supports the RDR overall but has reservations in certain areas.
He believes the lack of grandfathering is a “great shame”, Mifid II remains the “elephant in the room” and he is concerned about lack of advice for the mass market.
May says that while the RDR is important for Apcims members it will not have the same impact as for the IFA community. He welcomed the new qualification requirements but said the FSA should introduce some form of grandfathering.
He said: “Due to lack of grandfathering, many clients will lose trusted, experienced advisers, who will come out of the market – we have systems in place to aid sourcing of appropriate firms, but this is still challenging for many clients.”
He believes some of the positive message will be “confused” with uncertainty around the independent label.
May said: “There will be some confusion and noise in and around the positive messages. For the Apcims community specifically, clients trying to understand the new definition of the word “independent” will be confused. Fortunately the current clients of our firms have strong relationships but for new clients the definition will appear nonsensical.”
May argued there is still huge uncertainty around the effect of Mifid II on UK financial services and firms could end up bearing more costs.
He says: “Amendments have been submitted to protect RDR and the latest Council text bans all trail, but no-one knows where this will end up and who has the “right” answer. Only time will tell. If more change does happen, the costs to firms will be high and inevitably passed on to the client. Apcims would regard such a situation as more than messy – bordering on wholly unsatisfactory.”