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Fix RDR flaws and leave IFAs to look after their clients

Following Sir James Crosby’s decision finally to do the decent thing and fall on his sword, no doubt the FSA will be seeking some other failed banker to take his place and drive through the pro-bank agenda that underlies the RDR.

When will the Treasury realise that corrupt or incompetent fellow travellers will never bear down on their kindred spirits in the banking world but will prefer to persecute small IFAs.

The whole agenda of RDR is that the advice process is deeply flawed. Indeed, that part of it that relies on heavily targeted tied banc-assurance salespeople truly is deeply flawed so fix it and leave the IFA community to carry on looking after its satisfied clients, as they have done for many years.

By all means raise the qualifications bar but I do not believe that tampering with remuneration is any answer as fees may be fine for a number of high-net wealth and high-earning clients but is neither sought nor appreciated by the more average client. If hard disclosure of commission is properly followed, then where is the issue? There is after all no compulsion to take full high initial or indemnity commission and this can be agreed with the individual client, as suits the business model.

Let us stop this process now. It is simply designed to drive the less well off into the waiting jaws of the high- street sharks.

Mike Morley

Chartered financial planner

Chester

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