View more on these topics

‘RDR should be more radical’

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.”

Recommended

John Jory to speak at Labour conference

B&CE Benefit Schemes deputy chief executive John Jory is to be on a panel of speakers at the Labour Party’s annual conference.Jory will be a panel member of a debate on pensions entitled “Pensions: increasing saving, preserving provision” along with minister for pensions reform Mike O’Brien.Also on the panel will be NAPF chairman Chris Hitchen […]

Diversity pays for MPC convertibles

MPC Investors says its global convertibles fund has seen a lot of support from multi-managers, particularly since management groups have been launching multi-asset and total return portfolios.

Aifa says RDR comes down to core issue of independence

Aifa says there is a lack of logic behind the retail distribution review and reaffirmed its view that whole of market advice is an essential condition for independence.In the third of its RDR Issues Papers, Aifa says the RDR proposals could devalue the strong brand that consumers associate with the word independent.Deputy director general Fay […]

Review starts tests for generic advice

The Thoresen review is to pilot generic financial advice in the North-west, London, Staffordshire and South Yorkshire from September 17. It will aim to provide non-regulated advice or guidance on tax and benefits, saving and retire-ment planning to 5,000 consumers on the phone, internet and face to face.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment