Treasury financial secretary Mark Hoban has defended the Retail Distribution Review suggesting it will attract new talent to the industry and create a level playing field for advice.
Speaking at the Axa Elevate Partners’ Conference in Hertfordshire, Hoban said many advisers “have concerns” about the RDR but it will improve confidence in the industry and attract new talent.
He said: “Consumers need to understand the value that good financial advice can add. And a more transparent market – where advisors compete on cost and quality, not promises and hearsay – will only serve to achieve this. It will give consumers a better understanding of the services you provide, greater assurance in the advice you offer, and create a more level playing field for you to showcase your talents.”
Hoban dismissed fears that the RDR will lead to a sharp contraction in the size of the advice industry.
He said: “I believe that fresh new talent will be attracted to an industry with high professional standards. Take-up for financial planning degree courses is increasing and research has found a clear upward shift in qualifications.
“While financial advisors did not cause the global economic downturn, you do have an important role to play in rebuilding trust across the financial sector. Consumers need to have confidence in their advisers to know that they are well qualified and putting their interests first.”