The Smaller Business Practitioner Panel is calling for the retail distribution review to be delayed until the Financial Conduct Authority is set up and a simplified advice channel has been developed.
Speaking at the FSA annual public meeting, panel chairman Guy Matthews said: “The RDR should be delayed to allow a regime for simple products and simplified advice to be developed, a broader cost-benefit analysis of the RDR to be carried out and for the FCA objectives to be set and checked against the objectives of the RDR to ensure there are not any further changes once the FCA is in place.”
SBPP is calling for the minimum qualification requirements for simplified advisers to be set below QCF level four to reflect varying consumer needs and allow simplified advice to be provided more easily.
FSA chief executive Hector Sants said the FCA’s objectives are mostly in line with RDR objectives and that the only area that needs further consideration is the 2013 capital adequacy deadline for personal investment firms, which the regulator is considering extending.
Brunning Newman Houghton director David Brunning says: “It is critical that we make sure the poorer and less sophisticated clients have access to advice in the future. At the moment, they do not and it is a major flaw. The regulator and the Government are currently rushing towards the RDR and they need to look at this issue.”