RDR CP: Waters says adviser exodus exaggerated

FSA director of retail policy & conduct risk Dan Waters has disputed claims that the Retail Distribution Review will decimate adviser numbers, adding that some estimates are “way, way too high”.

The regulator stated yesterday that it estimates the fall-out to be around 15-20 per cent by 2012.

Speaking to Money Marketing, Waters said: “I do not think anybody knows exactly what the impact will be. We published the market impact analysis and other people have other numbers. I think some of the numbers out there are way, way too high.

“We have come in at somewhere between 15-20 per cent and is all of that down to the RDR? Of course not. We have to be realistic. There are so many things in play here that will affect the number of IFAs by 2012.”

Waters cited the current economic situation and the fact many advisers are nearing retirement. But he added that if the RDR is successful in raising the profile and professionalism of the IFA community then young people should be attracted to the job.

Waters says the workplace assessment should help limit the fall-out caused by the RDR but he insists this alternative is by no means an easy route.

He says: “We have an alternative assessment process. I do underline it is not a soft touch option because we cannot limit who that is offered to.

“Anyone advising now could potentially take advantage of that which means it has got to be equivilent otherwise you are just pretending to raise standards.

“We are trying to be flexible but I do not want people to be under the misapprehension that we are going to look at a couple of their files and say that is alright then.”

Aviva recently suggested that adviser numbers will halve by 2013 although Friends Provident chief executive Trevor Matthews slammed the firm’s forecast claiming it was “far too exaggerated”.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. RDR fallout
    15-20% your having a laugh. Minimum 30% from what is being discussed in the real world.

    Why don’t the FSA get straight to the point and ban IFAs?

  2. what does waters know/care
    Waters is a lunatic. employed by lunatics.How does he know what will happen? The truth is the FSA do not know. He is right about one thing it is not all down to the RDR it is more a case of the continued crap we have to take from this lot of overpaid muppets.Yes some advisers are retiring but instead of being able to do that over the next few years they are being kicked out by beaurocrats who know nothing about what makes a good adviser. Once the damage has been done and advice is only to be had at a few expensive firms, he will not be around to shoulder any of the blame. No one will be coming after him 15 or more years down the line. He will be enjoying his big fat payoff/bonus/pension at our expense. Why on earth would any Professional young person be attracted to the IFA community when, UNLIKE any other professional, he could be pursued to the grave for work carried out throughout his working life No peaceful retirement for the IFA sector especially when the fsa are famous for retrospective rule making. Any young professional would be better applying for a job at the FSA. That way he could sleep easy at night, no matter how badly he had performed during his employment. All he would have to do to claim a generous salary with big bonus thrown in is turn up for work.I would laugh if it were not so serious

  3. FSA lost the plot
    It is clear to see that the FSA do not have a remit to help promote competition and value to customers. All the RDR will actually achieve is to help the large companies who make big bucks from providing really bad advice to customers – with the one exception, their advisers will be well qualified. I think a review of the FSA would be better for the industry.

  4. Completely and utterly deluded people
    I bet they regret putting this mad show on the road, it is hard for them to back down because they are always right even if the two muppets who dreamed up this shambles, with the assistance of the PFS, and are now weaving their wicked web outside the regulator.

  5. RDR winners and loser
    1. winners – companies selling exam materials (cii), fsa staff (bonuses for failure) 2. losers – older ifas (driven out of business), less well off public (less advisers all charging high fees, less competition), other staff at ifa firms (who will be made redundant) 3. what a waste of time and money 4. 80% of our firm will not carry on as ifas 5. new ifas will have good memories and no experience 6. what is the difference between receiving a fee of £900 or commission of £900?

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