Conservative MP and Treasury select committee member Mark Garnier is calling for a “vital” parliamentary inquiry into the impact of the RDR.
Garnier is requesting TSC chair Andrew Tyrie launch an RDR “hangover investigation”, after Santander, Aviva and Axa scrapped their advice offerings in the wake of the RDR. A number of other institutions have either pulled out of financial advice or restricted their offering to high-net-worth clients.
Garnier says: “We need to revisit the RDR and see if it has delivered the intended outcomes and what the unintended consequences have been. It is vital that we do it and I will make sure it is raised.
“We may need to take a proper look at it after a year but we can raise certain issues about it in other investigations. If we are having people in from the FCA, we can ask them about the RDR and whether it is working well.”
The FCA has committed to a post-implementation review at the end of 2014.
In 2010, Garnier and Conservative MP Harriett Baldwin tabled a House of Commons debate on the impact of the RDR on IFAs. Baldwin says she is keeping her “ear to the ground” and will raise the issue in parliament again if her constituents are affected.
She says: “I did not expect the banks to move out of the market but I expected more consolidation of small IFAs which appears to be happening. Most IFAs I have spoken to have sold their businesses now.”
Apfa policy director Chris Hannant says: “It is sensible for the TSC to look at it again but we will not have the full RDR story by the end of this year.”