In a letter to Harvest Independent Financial Management IFA Julian Stevens, shadow financial secretary to the Treasury Mark Hoban says: “To justify its introduction beyond a reduction in compensation payments, there would have to be an evidence base that pointed to an increase in the supply of savings and evidence that the long stop would not unduly affect demand through the reputational damage it could cause – but neither exists in concrete form, indeed evidence has even emerged to the contrary.”
On the RDR, Hoban says the change in regulatory structure from the FSA to the Consumer Protection Agency “should not affect neither the progress of the RDR not the timetable”.
Speaking to Money Marketing, Hoban says the timing of the RDR will become a matter for the CPA.
He says while the deadlines are unlikely to be affected, he refused to comment on whether the CPA will look to change the content of the paper.
He says: “The RDR is a matter for the regulator not for government. What I tried to say in the letter is that responsibility will be transferred from the FSA to the CPA and I see no reason why the RDR will be delayed.”