The retail distribution review should be delayed for two years to allow an overlapping European directive to be introduced first, according to former IFA Association director general Garry Heath.
Speaking at a PanaceaIFA conference in London this morning, Heath said the implementation of the RDR, currently set for January 1 2013 ,should be delayed until the new markets in financial instruments directive is in place. It covers similar ground to the RDR, including adviser remuneration.
He said: “I really suggest we should stop doing this. We should be going to Government and saying for goodness sake stop this, at least for the next two years until Mifid comes in and we can have one thing for the whole of Europe.”
Speaking at the same conference, Institute for Financial Planning chief executive Nick Cann said: “Even if you delayed this by two years the businesses are still not going to make the changes required so we will be in exactly the same situation.”
But, Heath was adamant, warning that although wealthy investors would continue to receive advice many lower earners would find it too expensive.
He said: “Trying to stop the RDR is a very difficult thing to do but on the other hand how many millions of clients will be thrown in the abyss, getting no advice or, even worse, bank advice.”