Speaking at the Money Marketing/Lansons retail distribution review round table, E&Y financial services partner Shaun Crawford said he is concerned that this is the FSA’s biggest priority in the advice sector. He said: “The FSA has not managed to support small business. Advisers should possibly now lobby the Treasury, not the FSA.”
Technology & Technical founder Kim North said that the increased capital adequacy requirements will cause huge problems for IFA firms. She said: “The FSA has not given any clear definitions of what constitutes liquid assets, personal assets or anything else. Where is the extra money going to come from to satisfy the additional requirements?”
Crawford said the FSA does not want to consult further on the proposals in the RDR feedback statement and is now keen to move straight into the implementation stage.
He said: “It is clear that the FSA has other priorities but I thought it might have taken the RDR further, considering the credit crunch.”
Tenet group distribution and development director Keith Richards said he broadly agrees with the principles of the RDR, but thinks that the advice and sales structure is too complex.
He said: “It is a bit of a fudge. The RDR is a great opportunity for the industry but I am not sure it is going to make it. Unfortunately, the FSA seems to have been sidetracked on the wrong issues.
“I am slightly disappointed they did not go back to basics and instead the proposals are slightly more confusing than they need to be.”