Aifa says the RDR must lead to more consumers having their financial needs and wants addressed and the FSA should reward firms that invest in their business and its people to deliver the RDR outcomes.
It says no good firm should be put out of business by “arbitrary dates imposed by the regulator” and work based assessment and vocational training must be recognised as an equivalent to qualifications.
Aifa adds that the FSA needs to re-affirm its RDR objectives, so that it can be held accountable for delivering them
The trade body will present its full submission to the regulator later this week.
Director general Chris Cummings (pictured) says: “The RDR makes sweeping demands on the financial services industry, and the professional advice community in particular. And while we support the drive towards higher standards of professionalism, we are concerned that the current proposals will not meet the original objectives of the reform. There is a danger that the implementation of some of the proposals by the current deadlines will lead to fewer consumers being able to access independent, financial advice – and those who do will have to pay considerably more for it.
“While AIFA was supportive of the original objectives of the RDR, we have yet to see a detailed cost benefit analysis of the reform that stands up to scrutiny. Since the start of the banking crisis, many more people have sought out independent financial advice. IFAs are the most trusted part of retail financial services and that is why the FSA should be working with us to bring improvement, not risking the future of firms by rushing to impose deadlines that were set before the recession.”