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Mark Hoban says RDR will attract new adviser talent

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.”


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There are 29 comments at the moment, we would love to hear your opinion too.

  1. Lets remember these ‘self interest’ comments from Mr Hoban when reality hits in 2013 and his response is ‘well that’s what I thought would happen’ as he rides away over the hill to another comfortable govt.dept.with no comeback or recrimination for his errors.

  2. Clearly Mr Hoban does not have a clue what he is talking about.Only when its to late and the damage is done will they finally realise what a huge mistake the RDR is.

  3. “Promises and Hearsay”, sounds to me like a politician talking.

  4. Well said, Mark. Standards in the industry have been appalling for far too long and it’s about time advisers were dragged into the 21st century!

  5. I agree with the other postings, this is utter nonsense. There are less younger IFAs joining our industry now, so how will it be more attractive come post RDR when we are being forced to work in an even harder enviroment? There may be more students applying for degree courses in financial planning but in my experience these students are aiming to join insurers and not work at the advice level.

    When will Mr Hoban start listeneing to practioners, many of which have decades of experience at the sharp end?

  6. If you look closely at the photograph i am sure you can just about see the strings attached to his hands! any idea who his master could be ?

  7. Sorry but I fail to see how a move to fees will increase confidence in the industry or how using terminology to differentiate between different types of advice that the public dont will help either.

    Wasnt this the same argument used when product and commission disclosure was brought in or when the FSA was first dreamed up.

    The reason that there is a lack of confidence is that politicians and the press dont differentiate between sales staff at banks and independent financial advisers.

  8. As Manuel out of Fawlty Towers would say, “Que?”

    I am rather bemused by Mark Hoban’s assertion that the RDR will inspire new talent to join the industry.

    My own perspective of this issue, unlike the Right Honourable Gentleman’s, is a personal one, not an armchair one. To put it very tactfully, he’s having a larf, guv’nor.

    Unlike most of you, I am not a fully fledged IFA, but a Mortgage & Protection Advisor with ambitions to expand into the IFA arena.

    Speaking only for myself, the RDR is proving to be a massive deterrant. If the regulator wants to hold IFAs to a higher standard of qualifications, then fair enough, but it has created so much confusion in moving the goalposts on what counts as a relevant qualification and what doesn’t, that I honestly don’t know which way to turn. In recent weeks I have learned about “gapfill” too – I suppose as a new entrant to the industry I’ll have a lot of very large gaps to fill, right?

    The unilateral rejection of grandfathering also is quite frankly potty, and I have concerns as to how many of my more experienced colleagues will still be around to help mentor me.

    All the while, I am supposed to convince my clients that I know what I am talking about and charge them a big fat fee upfront for the priviledge. That’s more of a bluff than I am prepared to take, sorry Mr Hoban, I’m too ethical.

    I’ll stick to mortgages and protection thanks very much, financial areas I know I am good at, and which aren’t being completely torn to pieces by the RDR.

  9. Three words

    ‘NO IT WONT’

    ’nuff said

  10. Hoban get real man, what qualifications or experience have you to be a Minister????

  11. Mark Hoban MP may not understand economic but he may be better at physics? ‘Nature abhors a vacuum which means when a predicted 10,000 IFA leave this business for good without independent replacement tied bankassurers and their poor quality products will fill the vacum. perhaps this is what RDR is all about – another bank stitch up of the consumer?

  12. Mark Hoban has evinced a complete lack of interest in understanding these issues. His stance is based on tattered theories and unproven assertions.

    The consumer does not lack trust in IFAs but they do distrust the banks.

    If advisers are providing bad or biased advice (which the FSA and ABI investigations actually showed as not being the case) there are far easier ways of getting rid of them.

    Greedy advisers will fiddle fees, inept advisers are usually good at bluffing and thieves will thieve whatever.

    Hoban will be remembered as the financial services Nero, fiddling while the advice sector burns.

  13. How come we seem to be putting our money (Jobs) where Mark Hoban’s and the FSA’s mouthes are?
    Surely the senior people at the FSA AND Mark Hoban should be the wants who should be putting their money where there mouth is, i.e. if some of us are right, this will be a complete mess and we will not be staying around for it in which case, that will mean Mark Hoban and the FSA were wrong and perhaps he would commit to resign from Politics if he is proven wrong and give back both his pension and the salary he received for continuing to preside over NuLabour’s mess of the RDR, he was word would be detrimental for consumers AND advisers.
    If he’s right…..

  14. The depth and breadth of utter twaddle that this man is allowed to utter in the House of Commons are almost beyond belief. But then he still clings blindly to the misconception that the RDR is going to be the panacea for all the industry’s ills so I suppose we shouldn’t be too suprised.

  15. ‘ Well said, Mark. Standards in the industry have been appalling for far too long and it’s about time advisers were dragged into the 21st century!’ – comment above from Annonymous.
    Strong words from an annonymous posting….

    Advisers are already 21st century, ut Hoben needs to join real world.

  16. I notice that 34% of people who have voted on the money marketing poll are against grandfathering. It is very disappointing to know that so many believe it is ethical to keep moving the goalposts, or is it just pure greed that is motivating them, thinking about all the extra buisness they may get as a result of thousands of good IFAs losing their livelyhood?

    Maybe they should be careful what they wish for.

  17. Mr Hoban seems to have ingnored the fact many very experienced advisers are leaving the industry and will continue to do so prior and because of RDR and the FSA etc.

    Replacing them with new inexperienced advisers is hardly progress even if they charge fees.

    Hoban clearly does not want to listen to anyone except his own voice.

    He has previously stated that he was happy witht he Banks as they gave his mother good advice so I think that says it all really

  18. Mr. Hoban – Ha ha ha.

  19. I have today had an email conversation with my local MP – I wrote to him regarding the RDR and the impact on consumers and IFA alike and he has finally, he thinks, sent me a final reply (it’s got Treasury all over it!)….. ‘I believe that independent financial advisers (IFAs) have a significant role to play in financial services and I want to see them emerge from the RDR stronger, with a clearer sense of their role, and confident of their future in what are rapidly changing markets. My party encouraged IFAs to take a proactive approach to the review, in order to achieve a satisfactory outcome for IFAs as well as for other interested parties’…. – it is my view that they either don’t understand or don’t care. I didn’t think that IFA’s actually needed a ‘clearer sense of their role’ – I thought it was abundantly clear. Absolutely patronising to say the least and in my view every IFA in the land ought to write to their MP and not take this crap! It is easy enough now – – put your post code, compose your email and then send it. Couldn’t be simpler.

  20. david whitenstall 14th October 2010 at 7:42 pm

    I am 56yrs old and have till now been a mortgage and protection advisor for the last 5 years after a career as a Butchery Manager I hold full CeMAP CerGI and CeFA also have just passed DipFA as required for RDR. All these I have taken to enable me to get into a Financial Adviser role. I fit the bill as a newbe according to Mr Hoban, so why are the industry employers not wanting to take me on. Is it a case that no one knows whats going to happen and have no confidence in Mr Hoban’s promises so its a case of watch and wait. If this is the case then it will probably be to late to put right the wrongs that have been done!!

  21. Steven Farrall (Adviser Alliance) 15th October 2010 at 1:25 pm

    Hoban has never worked for anyone in his life. Well, alright he turned up for some consultancy or other, but mostly he seems to have swanned about on the fringes of ther political class until they found him a safe seat. He is therefore entirely ignorant of the Real World (as are the vast majority of his colleagues – on both sides of the House). So on almost anything he says you can bet he will be talking corporatists and statist nonsense. Not that helps our clients.

  22. It works like this Mr Hoban:

    1.Direct sales train and supply new recruits
    2.They mature and move onto to become independent to better serve their client needs

    Regulation has cut off the life blood and now Mark (rubber stamp) Hoban MP is blindly accepting Crash Gordon’s financial legacy by rubber stamping the discredited FSA RDR.

    Is this because Mark is not capable of original thought? Well idiotic statement like: RDR will attract new talent to the industry and create a level playing field for advice, rather proves my point!

    Hoban you are about to do an Iraq on financial services. You are about to create a vacuum but without anything left to fill it ….other than banks.


  23. To: Anonymous 14 Oct 2010 10:56 15th October 2010 at 3:40 pm

    To Anonymous | 14 Oct 2010 10:56 am

    Dear Mrs Hoban senior. Mark is a big boy now so please stop posting these support messages

  24. Terence P. O'HALLORAN 18th October 2010 at 2:00 pm

    If the banks had relied more on experience than youth and education they would not be in the current financial position- experience informs us of consequences from historic evidence.
    As I approach December 1st and my 40th anniversary in financial services, having instituted a fee based practice over 20 years ago, and having acheived Chartered status it would be ‘nice’ if some of the young ‘New model advisers’ just listened to experience and focused on the reason we are all in business. Talk to clients, listen to what they say. What they genuinely, unled, say.
    They do not deserve the patronising clap trap of professional opinion or educated guess work as to what is best for them.
    I give them choice, and as one correspondent has said, and I can verify because I review my time sheets (how many of you do so?) £690 per transaction is probably short of correct. My wealthy clients cross susidise my less well off clients. That is the way commerce works. Commission payments, on occasion and where appropriate, allow that; and, rich or poor, with minor exceptions, niether group cares less provided I serve THEIR NEEDS and not my own.
    The bankers knew that the property market was heading for a fall , but, inexperience and university education seems to have forgotten safety margins and common sense in favour of their new regime of higher multiples and the misleading of poorer prospect clients. RDR is in danger of achieving the same disastrous end.
    How do I know? Experience. Tap into experience before launching into expensive irrational experiments like RDR. Vested interest is the only driver and that vested interest is using your emotions to get their way. If in doubt,Mr Hoben, read this posting again, and again. Terence P

  25. Politicians and the FSA are paid “professionals” Perhaps we should insist on them taking appropriate qualifications for whichever job they are doing at the time before letting them decide the fate of a whole indutry which worked quite well without them as I recall.

  26. If you think of what has happened over the last 15 years, whatever the FSA dream up, never works – going round in circles comes to mind

  27. It worries me that there are people like Mark Hoban acting in the capacity of a minister with ill-informed or totally mis-guided information. As an adviser with 31 years experience, I am fed up with politicians messing with matters that are beyond them on the basis that they are somehow improving matters for the general public.

    When is the Dept of Common Sense going to be deployed to make sure the Govt do not “cock it all up” – again! Would I be out of line to suggest that politicians must first have worked in business before they tell us how our businesses should be run?

    From Mark Hobans comments about McDonalds level of qualifications, it woud seem all too apparent that he has neither ventured into a McDonalds nor sought financial advice from a qualified practictioner. And this guy is in the Treasury – God help us!

  28. Mark Hobans Research on the RDR (£150,000 worth) was apparently done free – by a firm who specialises in increasing market share for banks.

  29. A degree level entrant – sounds a bit like a solicitor or accountant to me. Doesn’t Mr Hoban realise the vast majority of the population can’t afford to pay for professional advice. That’s why they have legal aid, the NHS, social services and a free education. Yeah sure, you can call it what you like but does Mr Hoban know how much good solicitors charge? After all the cost is going to come from either the client or their investment. Is he really aware of by how much fees will go up? Because Commission isn’t chargable to VAT, but Fees are, and there you have it, the reason for the whole RDR. Mr Hoban should be spending less time telling the house of commons how he and the FSA have been medaling in markets they done understand and more time keeping their eye on the behaviour of failed banks and solving massive problems like the low uptake of personal pensions.

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