Accountancy firm BDO says the RDR is consistent with the Financial Conduct Authority’s objectives, as long as a simplified advice regime is developed and IFA numbers do not fall significantly.
In its report on the RDR published last month, the Treasury select committee called on the Treasury to confirm it is happy the RDR meets the new regulator’s objectives.
The FCA’s main objective will be to protect and enhance confidence in the financial system. It must also promote competition, secure an appropriate degree of protection for consumers, protect and enhance integrity and promote efficiency and choice in the financial system.
BDO partner and head of financial services Tim Kirk says: “The main thrust of the RDR is entirely consistent with what the FCA would want, although there may be concern over choice and competition if lots of advisers leave the industry, but I do not think it will lead to that.”
Assistant director Alex Ellerton says: “To ensure efficiency and choice you need straightforward, streamlined simplified advice.”
The TSC’s report asks the joint committee on the draft Financial Services Bill to consider an adviser long stop, adding it should be seen to be in the interest of consumers.
TSC chair Andrew Tyrie says: “It should not be introduced to benefit regulators or the industry, only the consumer.”
Ellerton says: “It will be difficult for the committee to agree in favour of automatically removing the right to complain after 15 years.”