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RDR set to shelve sales/ advice split to 2009

Next week’s retail distribution review paper is expected to focus on professionalism including plans for advisers to hold a solicitor-style practice certificate in order to give advice.

Money Marketing understands that decisions over more controversial aspects of the review, such as the sales/advice split, are likely to be deferred until next year.

In next week’s paper, the FSA is likely to firm up pro- posals for the minimum qualification for advisers to be QCA level four, to be achieved in three to five years, with no grandfathering.

An independent professional standards board is expected to be established.

An industry source says: “This looks like dual regulation for independent advisers, making it doubly unattractive. Solicitors pay £1,000 annually for their practice certificate. How much will IFAs have to pay?”

The FSA is also likely to give great clarity on its proposals for adviser remuneration to be set without provider influence.

Institute of Financial Planning chief executive Nick Cann says there is a need for a split between advice and sales and levels of professionalism need to be raised.

He says: “We need to make sure there is greater consistency in the standard of qualifications and that we see a greater improvement in standards.”

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