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Guernsey puts RDR plans on ice

Guernsey Castle Walk Port 480

Guernsey will not be introducing its own version of the Retail Distribution Review until assessing its impact on the UK, Money Marketing understands.

The Guernsey Financial Services Commission, which regulates Guernsey’s financial services industry, consulted on the disclosure of commission and professional qualifications last year and considered introducing an RDR-style regime but plans are understood to be on hold.

Last year Jersey announced a replica of the RDR but will not implement its rules until 1 January 2014. The Isle of Man is not imposing a commission ban and advisers have until 31 December 2013 to meet professional standards qualifications which are similar to the RDR.

Spearpoint Retirement is an IFA in both Jersey and Guernsey and managing director Meeku Patidar says he expects the market to move towards fee-based structures even without new rules.

He says: “If we take commission, it is the regulator’s view that most product providers are UK-led in some way and they will alter their product profiles to meet the RDR requirements. Indirectly there will be compliance with the RDR but it just won’t be prescribed as in the UK and Jersey.”

Patidar says any advantage to Guernsey would be limited and there is not much value in having lighter regulation for financial advisers.

Chartered Insurance Institute director of policy and public affairs David Thomson says: “If they under-set the bar it could have reputational damage. They are all sensitive about being offshore centres and they are cautious about being viewed as a lighter touch regime because in financial services you don’t want to be seen as a pariah centre.”

Informed Choice managing director Martin Bamford says all the jurisdictions are moving towards higher standards in the long-term.

But he adds: “Advice in Jersey, Guernsey and the Isle of Man is seen as having much lower standards than the rest of the UK market.”

The GFSC and the States of Guernsey Government both refused to comment.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Now there’s a bit of common sense and an easily achievable timescale, unlike our regulator which has imposed a short term cliff edge which is costing the whole industry, providers and intermediaries millions of pounds to implement with no direct benefit to consumers or them.

  2. I am at a lose as to why you would think UK has had a short-time scale – we were given 5 yrs notice, albeit some of the final rules were only agreed within the last 12 months – the intention has been with us SO much longer.
    Its just some chose not to look at the implications.

  3. Mark H (Not Hoban!) 30th August 2012 at 1:16 pm

    Quite frankly I don’t give a S*** anymore!!

  4. ken170647 youtube 30th August 2012 at 1:16 pm

    P Fry, 5 years’ notice? Actually we knew in 2006 about this daft idea, but it wasn’t until mid 2011 that we knew how to complete gapfilling. I for example reached level 4 in early 2009 but found out so much later that I was still only halfway there. This is absolutely preposterous. The whole thing shouldn’t be put on ice, it should be buried in 12 ft of concrete! As for deeming my business revenue illegal in 5 months – this is so so crazy…

  5. ken170647

    You still over two years to complete all of your gap filling and am sorry to say that industry has no excuse on the qualification level as we all knew what the rules were going to be.

    I also think that a commission ban is an opportunity after all maybe the fund managers and product providers will be forced to look at their charging structure to attract business or God forbid look at their fund performance!

  6. @ Mark H
    To be honest, I reckon that’s what Mark Hoban says every morning when he gets out of bed. He’s totally supine; a complete waste of a ministerial salary.
    Maybe he’s got somethingembarrassing on Cameron, so he’s got a permanent sinecure

  7. Hi Ken 170647
    Can you throw some of that concrete over the 2 twats call P Fry & Peter Herd

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