The Financial Services Skills Council is concerned the RDR will not satisfy its objective of achieving good consumer outcomes if not enough advisers remain in the industry.
The FSSC says it supports the move towards professionalism but is wary that an exodus of advisers ahead of the RDR deadline, combined with a potential shift away from providing advice to the mass market, will end up being damaging for consumers rather than benefiting them.
FSSC director Sarah Thwaites says: “Whilst all of us would agree that a more professional approach can only be of benefit, let us not lose sight of the consumer in all of this.
“The danger is that if too few existing advisers meet the new qualifications level, or the industry does not find it cost-effective to offer advice to the mass market, the very important aim of achieving good consumer outcomes may be lost.”
The comments come ahead of the House of Commons debate on the RDR on November 29.