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Tories won’t commit to 2012 on RDR

The Conservatives have refused to make a commitment to a 2012 deadline for compliance with the retail distribution review after announcing plans to scrap the FSA.

In this week’s policy white paper, the Tories propose scrapping the FSA, with the Bank of England given prudential powers and a new Consumer Protection Agency to regulate advisers.

Speaking to Money Marketing, Shadow Treasury Financial Secretary Mark Hoban says: “The RDR is an important process with potentially huge benefits for IFAs. It is in the interest of consumers and the industry to meet the challenges set out, including increasing access to advice. Advisers who give good advice to consumers have nothing to fear from this.”

But when asked if the Conservatives are committed to a 2012 deadline for compliance with the RDR proposals, Hoban says: “I don’t know I can answer that.”

Beachcroft Regulatory Consulting managing director Richard Hobbs says advisers should not assume the RDR will go ahead under a Tory Government. He says: “My advice for advisers is to lobby with particular vigour on the changes they want to see made to the RDR and to delay expensive re-engineering until after the general election when we can see more clearly where the land lies.”

Cicero Consulting managing director Iain Anderson says: “Any new structures will take time to bed in. The trajectory of the RDR is likely to get delayed. It may not be called the RDR any more but the underlying thinking is still likely to emerge at the other end.”

Simplybiz chairman Ken Davy says the RDR should be delayed to take account of a likely change in Government and new European regulations planned for 2014. He says: “These proposals, combined with the certainty of a general election in less than a year, shine a spotlight on the RDR, particularly the unseemly haste with which the FSA is trying to steamroller the far-reaching, radical and expensive RDR proposals through.”

But Personal Finance Society chief executive Fay Goddard says: “Against this background of political uncertainty, doing nothing would seem to be a very high-risk strategy and one that could see firms putting their entire business at risk. Our view is that the RDR will go ahead as laid out.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. A weaker FSA by another name!
    Well if the Bank of England is going to regulate the Banks then from an IFA viewpoint all we will have is the FSA with another name. So CPA instead of FSA! Still I guess that may mean that they may be unable to justify expensive hotel stays and will have to leave that to the BoE!!! As IFA’s, I feel that we have to be resigned to RDR coming in force eventually.

  2. FSA pay IFA’s a monthly fee
    I think that FSA should pay IFA’s a monthly fee to advise and give financial help to low income families, of which there may be many (4 million plus) given, the strength of the first few waves of UK’s credit crunch.
    By having IFA’s providing free advice to those that need it this will in turn not only improve their dire situation but provide an additional boost towards the future UK financial recovery

  3. FEES OR NO FEES
    i have a medium size client base of approx 600 and would say 90% of these clients are low to medium income it has been built on referral only , the majority of my business is protection and pension , if the fsa do not include fees for protection in this review ( but hey lets not over insure anyone !!!) i will not notice a great deal of difference but if they include this i will go out of business as i can assure the fsa that the 90% of my clients will not be able to afford fees or not pay them that is what i would call the real world and not looking thro it with fsa glasses ……………..i am lucky i have the level 4 qualification but will it do me anygood probably help me get a job with the banks who will probably have more enquiries than they can ever handle due to the reduction of ifa numbers…………we will see

  4. Getmealargeone 23rd July 2009 at 8:29 pm

    RDR means Reduction/Downgrade/Removal of IFAs
    Been in the industry now for 36 years, still going strong with client base built on referrals. Got FPC and CeMap, that was tough enough. Know a bit about everything and nothing about something. RDR is going to see me say goodbye as I cant do exams like I used to. Never mind my clients will go to the Abbey and Barclays and Lloyds and get stitched up as sure as eggs are eggs. This is what it was always about. IFAs have come throught his financial crisis well and after all the stress around learning new ISAs (all the b**llocks about maxis and minis) then stakeholder pensions (all companies had to have a scheme) sales of bonds over unit trusts etc it now seems rather pointless when you see how badly the banks acted. RDR stands for the Reduction, Downgrade and Removal of small IFAs who do their jobs well. Not one complaint and I’m no longer wanted…… Pity the clients not me.

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