View more on these topics

‘Platform rule delays mean RDR deadline is irrelevant’

Stuart Fowler

The retail distribution review deadline of January 1, 2013 no longer holds significance in terms of removing remuneration bias due to the delays in implementing the FSA’s platform rules, according to Fowler Drew investment director Stuart Fowler.

He says the regulator cannot claim the RDR deadline will remove bias from the market as commission bias and other incentives will still exist until the platform rules are implemented.

The FSA published its platform policy statement earlier this month. It said a ban on payments between fund managers and platforms and a ban on cash rebates was “desirable” but that further research was needed to understand the implications of these changes. Any rules banning payments to platforms will not come into force until after the RDR deadline of January 1, 2013.

Fowler says it is “madness” that RDR issues such as platform rules, legacy commission and simplified advice have yet to be decided.

He says: “It was a really big mistake to leave platforms until the end. I am now feeling that the RDR will have no effect at all.

“If fund managers can continue to make payments to platforms, and can continue to pay cash rebates, then what has changed?”

Thameside Wealth director Tom Kean says: “It is my belief that the RDR will not remove bias. We will simply have fee-charging bias instead, where people charge a fee but no real work is carried out.”


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. Well said Tom. Does anyone really think that changing from comission to CAR will improve anything ? Advisers are actually being encouraged by RDR to conduct activity for its own sake – simply in an attempt to justify every higher “fees”.

    If transparency and “fee” results in higher charges for me as an investor, and I am certain that it will, then give me a bit of good old fashioned comission corruption.

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