The Treasury Committee has today published correspondence between the Chairman of the Committee, Andrew Tyrie MP, and Managing Director of the FSA, Martin Wheatley, regarding the FSA’s Retail Distribution Review (RDR).
Chairman Andrew Tyrie's comments
The FSA’s Retail Distribution Review (RDR) will radically reform the provision of financial advice in the UK. Its introduction has placed a heavy burden on practitioners large and small, with an attendant risk for consumers.
To minimise the risk that consumers lose out during the transition, and to maintain choice and competition in the advice market, the Treasury Committee called for the implementation of the new rules to be delayed by 12 months.
The Committee was disappointed that the FSA rejected this recommendation. We also deprecated the speed with which that decision was made.
The banning of commission and the introduction of a clear market price will be carefully monitored by the Treasury Committee in an effort to ensure that the expected benefits flow to consumers.The Committee welcomes the FSA’s assurance that four alternative assessments are now available for those who prefer not to sit formal examinations. This will provide greater opportunities for compliance.
As the deadline approaches, it is important that the FSA redoubles its efforts to inform the public of the changes and to increase the levels of industry compliance. The publication last week of a new, FSA guide to financial advice is a step forward.