View more on these topics

Cummings’ rallying call to join fight against RDR

Aifa has called for the advice community to come together to fight retail distribution review proposals which it believes are a grave danger to the future of professional advice and hugely damaging to consumers.

It has drawn up a sixmonth battle plan in which it will consult members, conduct consumer research and talk to politicians, regulators, competition authorities, consumer groups and the European Commission.

Director general Chris Cummings says debate over the RDR has differed markedly from past regulatory debates because, unlike in past arguments such as depolarisation, the provider and adviser communities have not found a common cause.

He says outside the advice community, voices have been silent about the value of independent financial advice.

Cummings says Aifa will be working with the Institute of Financial Planning and the Personal Finance Society to put forward a positive agenda.

He says: “If we come together, we have a fighting chance of protecting professional advice. If we do not and we stay fragmented, I have grave doubts about maintaining a robust and sizeable IFA community.”

Cummings warns advisers who believe they will be retiring by the time the proposals come to fruition that they may not have any buyers for their business if IFAs are reduced to “boutique specialists” and providers are uninterested, having already captured a huge segment of distribution.

He also says financial planners should not stand by and believe that the RDR does not effect them.

Cummings says the banks will not stop at primary advice and will use it as a springboard to go for high-end business, threatening the long-term sustainability of many of these businesses as well as the integrity of the industry.

Recommended

A new dawn

With debate raging around the Retail Distribution Review and its related papers and continued talk of further market consolidation the traditional summer news lull does not look like appearing anytime soon.

Cofunds to offer payment choice

Cofunds will offer advisers the choice of being paid by fees, commission or a combination of both from the new year in the next stage of its drive towards offering a full wrap.The platform says the multi-choice payment option will mean advisers no longer have to use a range of platforms for different segments of […]

Panel refutes RDR commission claim

The FSA’s practitioner panel has attacked the underlying assumption behind the retail distribution review that commission leads to bias, suggesting there is no reliable evidence that this is the case.Speaking at the FSA’s ann-ual public meeting in London last week, practitioner panel chairman Roy Leighton said the debate about the future of the industry should […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com