Advisers, trade bodies and banks are concerned about how regulatory changes in Europe will affect the RDR.
Aifa says the FSA needs to show how it will accommodate revisions to major European initiatives such as the insurance mediation directive and Mifid.
It says: “The FSA has failed to articulate how it will account for the impact of these pieces of legislation on the intermediary market and how the streams of the RDR will be affected.”
SimplyBiz says if the RDR goes ahead, subsequent changes res-ulting from EU directives could increase costs to consumers.
It says: “In June 2010, the European Commission issued a document listing 26 directives or proposals which may impact on the UK finance sector. If the RDR proceeds as scheduled, the UK will face the cost and disruption of the RDR and further cost and disruption from the EU decisions. This cannot be good for consumers or the sector.”
The Association of British Insurers called on the Government and the FSA to ensure implementation requirements and timetables are harmonised wherever possible to keep costs to a minimum.