In its Interim Report published today, the FSA says that while there are no current plans for a read-across of the RDR from the investment market to the mortgage or general insurance markets, it is keeping an open mind to where the review will go.
It says: “We have an open mind about where the review goes and, as its aims are for the long term, implementation may occur when market conditions are very different.”
The FSA says that the RDR must meet its desired outcomes for the investment market, but if the feedback and its own analysis suggest a wider application then that is something it will consider and discuss “openly” with the market.
It says that in the case of the mortgage market this would be part of the wider review of the MCOB regime that it announced in its 2008 business plan.
The FSA says that it recognises that the creation of a simpler landscape for distributing investment products, when many consumers will also be buying products from other market sectors, begs questions about the impact on consumer understanding of the wider market.
It says: “Of course, firms that offer products and services beyond the investment sector would be free to apply any new requirements for that sector across others too (to the extent that existing regulations would permit.)”