View more on these topics

Online comments: What price an RDR turnaround?

Online comments related to article: What price an RDR turnaround?

I must be the only person who is not getting this. How is it bad news for IFA’s that the banking model which was consumer detrimental has been made unworkable. Clients have always paid for advice, most IFA’s told their clients clearly what the costs were.

The issue has always been that tied advice is never good advice, it is always over priced and rarely even close to best advice and misrepresented as being Free.

As with most of us under the old model, I would very often work extremely hard for not a lot, and then sometimes do not a lot for a lot. I welcome the opportunity to not be beaten with the TCF stick because I will not need to tolerate the type of person who thinks they can waste my time because it does not cost them anything.

Steve P

Less “competition” equals more business for professional advisers so I win. But complex rules and frankly stupid regulation (such as most aspects of RDR) lead to a less advised public – shame on the FSA.

The regulatory classes learnt nothing from stakeholder – just because it is cheap does not mean people will buy it.

Simon Webster

I have sympathy for those made redundant, those who couldn’t pass the QCF level 4, those people who wont pay a fee but as a businessman this removal of the last bank is brilliant news for me.

Tim Harvey

The loss of bank advice might well increase some advisers business but at what cost?

Many of my clients were introduced to the concept of saving or insuring by a bank (or industrial branch office) and then progressed to whole of market advice. Many would not have made the quantum leap to WOM advice had they not been prepared by their bank.

Consider also whether it is better to rid the market of bancassurance or better to clean it up so that it provides a worthwhile conduit for those many clients who will never approach an adviser.

Alan Lakey

Looks like advisers have forgotten just how much worse off clients are going to be under RDR.

Try getting an RDR ready quote from a provider for a £100000 bond, which has no initial charge, no withdrawals and based on 3 + 0.5 per cent.

Then compare that to the current system of commission of 3 + 0.5 per cent. By the time the client get to the 10 year point (even at the middle growth rate) check out the difference in values.

Client is thousands of pounds better off under current system. On top of that, currently providers can offset commission payments made to advisers as business expenses for corporation tax. Under adviser charging they cant so guess what the product charges are going to increase. Who pays that? Oh yeah the poor client.


Some time ago a journalist responded to comments I made on the web (the only one ever, so hats off to him for that) about the level of bad advice.

The gist of his comment was “you should see the piles of complaints we get in weekly about financial advice”. To him the complaints were the whole of his world and demonstrated just how bad things were.

What appeared to pass him by was the millions of consumers who did not complain. Sit in the middle of a sewer and one could be forgiven for believing that the whole world was crap.

And that is the problem with the FSA and its solutions. The only see the problems, so to them the market is a problem. Certainly there are problems and addressable problems, but the system will never ever be perfect.

Glen McKeown


Dominik Lipnicki MM blog

Dominik Lipnicki: The north/south housing divide

The average price of a house has always decreased as consistently as the temperature the further north you travel in this country. It is one of the key definitions of our north-south divide and mortgage brokers are perhaps more familiar than anyone else with the stark variations in prices of very similar houses from region […]


Ex-Labour Treasury minister slams party for financial services ‘hysteria’

Former Labour Treasury exchequer secretary Kitty Ussher has delivered a stinging critique of her party for indulging in the “politics of envy” and “hysteria” in its stance towards financial services. Speaking at a fringe debate on producers vs predators at the Labour autumn conference in Manchester yesterday, Ussher said the current debate is “unhealthy and […]

Net retail sales hit slump in August as investors pull out of equities

The Investment Management Association (IMA) has revealed that net retail sales hit the lowest level since October 2008, after reporting inflows of just £23.2m during August. Inflows were far lower than the previous year’s £1.2bn in net retail sales, reported during August 2011, as investors pulled money out of equity funds. Net outflows of £604m […]

Bank of England BoE Bank 480

Will Funding for Lending boost the mortgage market?

Last week, the Bank of England revealed that 13 firms have signed up to the Funding for Lending Scheme but will the scheme succeed in boosting lending at lower rates? In July, Bank of England governor Mervyn King announced that under the scheme, banks and building societies can exchange existing loans for Treasury bills, on […]

Protecting long-term savings from short-term policy

By Jamie Clark, Business Development Manager The pensions revolution is almost upon us. As with any revolution, there will be winners and losers. The winners in this case could presumably be the politicians that orchestrated pensions freedom and choice just before the general election. As for the losers, there may be many thousands of people […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. With regard to RDR – I am most concerned at a couple of platforms that have yet to be totally clear about legacy triggers.

    For me, anything pre-31/12/12 must surely be legacy. Adviser Charging didn’t exist until recently, so for any wrap or platform to say that they were already offering Adviser Charging worries me and how I should be communicating to clients.

    I am probably wrong and I hope I am. But I would like to hear that platforms are guaranteeing that they have no legacy triggers.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm