View more on these topics

Time to consider the issues

The FSA has delayed the RDR consultation by one month to November to allow new managing director Jon Pain time to get up to speed.

This seems reasonable, given the need to get the right decis-ions made and a sensible consul-tation launched. Pain’s remit includes all the things going on in banking and mortgages so we can understand why he does not have a lot of time on his hands to get himself fully informed of the facts, figures and risks.

But we will try to suggest a few RDR issues in a nutshell. As a newspaper, we are broadly in favour of IFAs’ qualifications increasing but only by a reasonable level and given a reasonable timetable. We think customer-agreed remuneration, applied intelligently, can be made to work.

We are wary of the lobbying power of the banks and arguably some multi-ties. We do not believe they should be knocked out of the market but we do feel there are several questions to be asked about how they disclose their tied relationships. There has been a strong focus on commission for IFAs and the need to change how their remuneration is expressed. We therefore suggest that the ways in which the multi-tied and tied advisers are incentivised should be scrutinised, particularly if there are gaps in their advice.

We think that by far and away the most difficult part of the distribution reform process is trying to crack how to distribute protection and savings to those who do not receive advice at present.

We also have to wonder whether the FSA can even begin to start to crack that particular nut without cooperation not just from existing players in the market but also from the Government in terms of means-testing, benefits and actually a whole different approach to savings policy. That remains to be seen.

Clearly, the FSA is determined that its agenda for reform of the pension and investment sphere of retail financial – RDR, TCF et al – are not put on any sort of regulatory back-burner.

But we would finally suggest to Mr Pain that while the life and pension side of advice may nudge in the direction of more qualifications, we still think advice is better than it has ever been.


FSAS director Mackay to retire

Alistair Mackay, director of Lighthouse Group subsidiary Financial Services Advice and Support is to retire at the end of the year. Executive director Andrew Snowball will work alongside fellow co-founder Alan Pinkerton to form the management team.

Daniel godfrey

It is 10 years since Daniel Godfrey took over as director general of the Association of Investment Companies. In the world of investment trusts, this may not seem like a long time, after all, the first one, Foreign & Colonial Investment Trust, was established in 1868, and the trade body, the Association of Investment Trust Companies was set up in 1932. But in terms of a career, 10 years is a considerable length of time, particularly given the challenges that investment trusts have faced during this period.


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