The retail distribution review should be more radical and aggressive, says Beachcroft Regulatory Consulting managing director Richard Hobbs.
Speaking at a panel debate at Osney Media’s financial services distribution summit in London last week, Hobbs said public policy has not created a framework in which advisers can make money and the RDR presupposes that industry practitioners can overturn this.
He said: “The retail distribution review would have to be more radical and aggressive for advisers to start making money. I would advise a more radical retail distribution review rather than a less radical one.”
The panel was split on whether banks would be the big winners from the RDR. The Money Portal group head of distribution Alan Easter said that banks will pose the biggest threat to advisers under current proposals while Norwich Union Life director of distribution development Stephen Gay said: “The RDR paper as it stands plays into the hands of the banks.”
Tenet Group chief executive officer Simon Hudson said: “I do not think the banks are a threat at all. If they can find a way of servicing the masses, that would be fantastic because I do not think our advisers will be going after that business.”
SimplyBiz chairman Ken Davy said: “I would be delighted to see banks dealing with the primary levels of advice because they will be preparing them to be advisers’ clients later on. It is essential we preserve the IFA sector and enable it to continue its journey to professionalism.”