Treasury select committee member Jesse Norman has raised concerns that the retail distribution review will lead to reduced diversity in financial services.
Speaking at a fringe event at the Conservative Party conference in Manchester today, Norman said the reduction in diversity the RDR will deliver through lowering adviser numbers is part of a long-term trend which should be reversed.
He said: “In the 1980s the City of London was much more diverse than it is now. Now we have seen the triumph of the corporate model in financial services and an awful lot of diversity has been abolished, it would be a very fine thing if we were to get some back.”
Also speaking at the fringe, Nationwide product and marketing director Chris Rhodes said Government policy must foster diversity.
He said: “As we look at the policy response to de-risk financial services we must not kill the diversity of business models which will deliver this local free flow of capital. We should be really careful there is diversity of the provision of savings, lending and the provision of capital and I think there is a danger we are going in the opposite directions.”