The Association of Private Client Investment Managers and Stockbrokers has blasted the “messy” RDR for not including grandfathering measures for advisers.
Speaking at a Prospect event at the London Stock Exchange last week, Apcims chief executive Tim May said he supports the RDR 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.
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: “For the Apcims community specifically, clients trying to understand the new definition of the word “independent” will be confused.”
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: “ If more change does happen, the costs to firms will be high and inevitably passed on to the client.”