View more on these topics

‘Primary advice puts consumers at risk’

Consumer advocate Mick McAteer has blasted the RDR for “completely missing the point” by failing to understand consumer needs and playing into providers’ hands.

McAteer also warned that “second-class” primary advice could damage generic advice.

Speaking at Osney Media’s financial services distribution summit in London this week, McAteer said the RDR will cause more confusion in a marketplace that is already confused following depolarisation and that there are too many categories of adviser.

He said: “It fails to tackle conflicts of interest in the non-IFA channels. It is naive to expect non-IFA channels to move away from commission. This is not a level playing field and will reduce the competitive pressure the IFA has on the market.

“Primary advice is an artificial construct not designed with consumers in mind. It will be seen as second-class regulation and counter-productive to consumer risk. It may undermine plans for the generic advice service and make it more difficult for ordinary consumers to access advice.

“There are simply too many conflicts of interest and the consumer interest has been subordinated by the providers. We must cut the cost of regulation to promote financial inclusion.

“The RDR misses the point. Advisers cannot be called independent unless they are sourcing products from the whole of the market. They should not be called independent if they use commission. It is sleight of hand to call commission fee-based.”


Voice of hope

Summer may have been fairly miserable but there has been a golden ray of sunshine for every IFA firm since the FSA board met in July and approved proposals to reform the Financial Services Compensation Scheme. It is also good news for consumers who will benefit from a scheme, now given a new lease of life, which will offer some financial recompense when no one else can. The FSCS is a vital regulatory safety net which helps maintain consumer confidence in our industry.

Initial charge discount from Credit Suisse

Credit Suisse has announced a full initial charge discount on investments into its new multi asset distribution fund, launched on Monday this week. Credit Suisse says the discount will give advisers the flexibility to take full commission or offer a combination of discount and commission. The offer will be available through all major platforms including […]

Protection plan

Does the shadow of the RDR fall on the protection and mortgage markets too? The question is being asked in the marketplace but the answer is simple.

Risky lending to decline but BTL boom goes on

High-risk categories of lending are expected to see a reduction in business in the coming months, according to Intermediary Mortgage Lenders’ Association’s latest member survey.Self-certification business is expected to fall by around 2 per cent over the next quarter while light, medium and heavy-adverse volumes are predicted to ease by slightly smaller percentages.Lenders believe that […]

9 October thumbnail

Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


News and expert analysis straight to your inbox

Sign up


    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 thought leadership.

    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