Big distribution firms have thrown their support behind the Treasury select committee’s call for a 12-month RDR delay suggesting it would ensure large numbers of consumers do not lose access to decent advice.
Sesame believes the delay, called for in a TSC report published over the weekend, will ensure 500,000 clients continue to receive advice from around 2,000 advisers who may otherwise leave the industry.
Chairman Ivan Martin says: “A delay would enable more advisers to get across the RDR finishing line and reduce the advice gap that could otherwise deprive people of the valuable service they receive from their adviser.”
Openwork believes the 12-month period would allow a further 5-10 per cent of advisers to remain in the industry. Recently appointed chief executive Mary-Anne McIntyre says: “Spreading the load over two years rather than one will be a fantastic help at a very difficult time for advisers.”
SimplyBiz joint managing director Matt Timmins agrees a 12-month delay would be a positive move for the industry and consumers. He says: “While we have known about the RDR for some time now, the fact is we are still dealing with consultation papers and waiting for the final rules to be issued. Furthermore, it has taken a great deal of time for alternative exam routes and more alternative assessment routes to become available.”
Threesixty Services commercial director Phil Young says: “Clearly, the delay has its merits and would help a lot of advisers get their businesses and qualifications in place.”
But Duke Street partner Miles Cresswell-Turner, whose firm owns a major interest of IFA UK Wealth Management, says: “If the FSA start to move on the date we will end up with a watered-down version of the RDR.”
Syndaxi Chartered Financial Planners managing director Robert Reid says: “Advisers have had years to get themselves sorted and that is what they should have done.”