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Cathedral chief says IFAs should be ready for RDR within two years

Cathedral Financial Management director Timothy Ames believes the retail distribution review transition period should be just two years.

Ames says it has been clear for a long time that the FSA would expect advisers to reach a higher level of qualification, so advisers should have begun working towards this goal.

He says the RDR interim report does not go far enough and the minimum standard for advisers should be certified or chartered status rather than diploma level.

He says: “As an industry, we need to draw a line in the sand and make a massive jump forward, which means bringing in serious professional exams within a maximum of two years. Any adviser that has not started working towards this goal is quite frankly the author of their own misfortune. The writing has been on the wall for 10 years.”

Ames says the FSA should bring back the maximum commission agreement at 3 per cent when the RDR comes into force and cut it to 2 per cent in five years.

He also says stochastic modeling is a huge compliance risk for inexperienced advisers.

Ames says: “It is a waste of time because it looks backwards when the job of a financial planner is to look forwards.”


Document replaces menu and IDD

The FSA will introduce a single services and costs disclosure document to replace the menu and initial disclosure document from August. It stresses the documents are only guidance and advisers can use the old documents until August 2009.


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