Judgements made by the Financial Conduct Authority on whether firms’ behaviour is within the “spirit of the RDR” risks creating regulatory uncertainty, says Tatton Investment Management.
The fund management arm of Paradigm Partners is concerned the FCA will follow its predecessor the FSA in making judgements according to whether conduct fits in with the principles behind the RDR.
Speaking at a Perspective roundtable in London last week, Tatton chief investment officer and former Octopus Investments chief investment officer Lothar Mentel said: “One point that is crucial for the future is more regulatory certainty. I sense real uncertainty at the moment.
“It is the regulator that will decide whether something is within the spirit of the rules or not. That to me is not very conducive to better regulation, and not a framework on which you can rely.”
Ad Valorem Wealth Management managing director Derek Baptist said: “What we need is stable legislation, while the Government takes the time to address the long-term issue of how to bring products like pensions into the modern world.”