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Phased delivery for RDR

Certain aspects of the retail distribution review, such as adviser charging and prudential requirements, are likely to be phased in over a longer timeframe, according to Money Marketing RDR debate panellists.

Speaking at the event at Grocers’ Hall in the City of London last week, Positive Solutions chief executive Jim Reeve said that the parts of the review which will have an impact on firms’s cashflow could be extended past the 2012 deadline.

Reeve said: “I think the IFA community will be well placed to implement a number of the changes. I think the challenge of cashflow and how it impacts companies is a real consideration so it may well be that some aspects can be phased in over a longer period.”

Ernst & Young financial services partner Shaun Crawford said while the qualification deadlines are likely to be met, adviser-charging and higher capital adequacy requirements are not.

He said: “I am not sure the capital adequacy rules will come in as fast as expected, keeping in mind the economic issues with small businesses.”

Sesame chairman Ivan Martin told delegates that the advice sector should not be calling for a delay to the RDR deadlines if it wants the FSA to view it as progressive and dedicated to raising professional standards.

He said: “I do not think that we should be crying from the IFA community to delay the RDR. I think it is almost playing into the FSA’s hands. They are almost looking for the IFA community to kick back and say they are not progressive, they are not going forward and they are not looking at the new professional qualifications. I think we should be more positive about it.”

But he added: “I have seen nothing from the regulator in terms of an impact analysis and the business case that goes with the RDR. It is important to do an impact analysis so you can see if the outcome looks a better place or a worse place. If it looks a better place, what is the cost of that better place?”

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