Skandia calls for independent body to police decency limits

Skandia has called for an independent body to police RDR decency limits.

According to the firm, regulating decency limits should not be the sole responsibility of product providers because they will not always have all the information required to fully asses an individual case.

Skandia says product providers do have a role in ensuring that customers receive the outcome but an independent body such as the Professional Standards Board needs to be given formal responsibility for enforcing these limits via an agreed code of ethics.

The latest RDR consultation paper states that there is a ‘need for product providers to be able to decline, or at least alert the FSA to, requests from adviser firms for payment of extreme adviser charges’.

Skandia says it will be virtually impossible for product providers to accurately determine when to decline requests from adviser firms.

It notes that a key principles of adviser charging is that the amount paid to the adviser is agreed between the adviser and each individual client and that the provider should have no influence over the payment.

It says therefore a product provider having to enforce decency limits is not consistent with this principle.

It says product providers will also not know what advisory services the adviser has delivered to their client surrounding a particular product sale.

Skandia strategy director Michelle Cracknell says: “Product providers certainly have a role to play in setting decency limits but they should not become the regulator. There should be a stand alone body that is responsible for policing decency limits and investigating situations where these limits are exceeded.”


British public sector debt swells

Public sector net debt in Britain swelled to £799 billion, or 56.6% of gross domestic product (GDP) in June, according to the Office for National Statistics (ONS).Net borrowing in the public sector was £13 billion over the month, almost double the £7.5 billion net borrowing in June 2008.Despite the increase, net borrowing fell on a […]

Damaged goods

How badly damaged is the brand that we call “the banks” and what is the chance of them recovering consumer trust in the short and medium terms? Reviews by Sir David Walker and Lord Turner have focused on key areas, including those of non-executive director and institutional investor duties and responsibilities and remuneration structures. In the case of Turner, a key issue was the financial security of the banks.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm