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‘Sections of the RDR will be scrapped’

Lifesearch managing director Tom Baigrie believes the FSA’s retail distribution review will not be implemented in full.

Speaking at this year’s Lifesearch Protection Awards in London last week, Baigrie said he believed only certain aspects of the review will see the light of day. He says the 2012 deadline will not be met, with a probable new Govern- ment meaning that some RDR requirements will be quashed.

Baigrie said: “One of the reasons I think the RDR will fail is because it is a big business solution. It is a solution to consumer problems and regulatory problems being provided by the bigger businesses. But if you think about it, it is the world’s big businesses that have brought the economies of the world to their knees.

“So it is unlikely to be that future solutions are going to be the biggest business solutions. The weight of prosperity to come is smaller businesses fighting their way through.”

Baigrie also criticised the Government’s “adolescent handling of the economy” and the FSA’s “hyperactivity” for coming between the consumer and the protection market.

He said: “The Government and the regulator have certainly helped to ruin the wealth of work for a great number of people and they have ruined the wealth of almost all savers.

“Quite rightly, much of the blame is to international bankers but I have no doubt that if were we in a lightly taxed and regulated economy we would already be bouncing back from the mistakes of those international bankers.”

Baigrie is now calling on the FSA and the Government to embrace creativity, innovation and a lighter touch to help the economy fight its way out of trouble.

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