CII and ABI reject call for RDR delay

The Chartered Insurance Institute and the Association of British Insurers have argued against the Treasury select committee’s recommendation to delay the RDR by a year, saying such a delay would increase uncertainty and damage momentum.

The TSC published its report into the RDR over the weekend, which called for the implementation of the RDR to be delayed by a year to give advisers extra time to attain the required QCF level 4 qualification.

But the FSA says it remains committed to the existing timetable of January 1, 2013.

CII director of policy and public affairs David Thomson says: “For the advisory community, further delay will serve to increase uncertainty and even undermine the positive momentum that has already built behind the RDR.

“We believe the public is hungry for a financial advice sector that has earned parity of esteem with other professions.”

Thomson cites CII research carried out in June which suggests that 33 per cent of those who do not currently take financial advice would consider doing so once the RDR changes were explained to them.

The ABI also supports the existing timetable for implementing the RDR.

ABI director of life and savings Maggie Craig (pictured) says: “The ABI does not feel a compelling case has been made for a delay on adviser charging.  We hope that the financial adviser community should not need a delay in order to obtain the relevant qualifications. 

“We must all now focus on consumers receiving good quality, affordable advice so the RDR is successful.”