Extra time call for RDR triggers angry adviser reaction
The Treasury select committee proposal to put back RDR by another year has provoked an angry reaction from the Chartered Insurance Institute and the Association of British Insurers.
The TSC’s report on the RDR calls for extra time so advisers can better meet RDR requirements, especially achieving QCF level four qualification.
The Financial Services Authority is adamant that implementation will start on the January 1, 2013.
CII director of policy and public affairs David Thomson said: “We welcome the TSC’s support for higher qualifications as a core part of the RDR. The key concern now is to complete the RDR process and ensure that there is a consumer campaign in place to outline the benefits to the public as soon as practicable – at the moment less than one in five are aware of the RDR. This will give certainty to both the public and the financial advice community alike.
“It is worth remembering that the original aim of the RDR, instigated five years ago, is to restore public confidence in the retail investment market and associated financial advice. It’s clear that if we want to encourage a savings and investment culture in the UK, then public confidence in financial advice and services is crucial.
“The imperative to regain public trust in our sector has never been greater. We know two thirds of consumers expect people offering financial advice to have a professional qualification equivalent to a full degree status or higher. So the move to higher levels of qualification is a key step in rebuilding the public’s trust in our sector.
“For the advisory community, further delay will serve to increase uncertainty and even undermine the positive momentum that has already built behind the RDR. The vast majority of our members have made great strides towards meeting the qualification challenges presented by the review.”
The ABI says sticking to the current RDR timetable will improve advice to customers.
ABI director of life and savings Maggie Craig says: “It is imperative for the industry and FSA to not lose sight of the RDR’s overall objective which was to make things simpler and more transparent for customers.
The ABI do not feel a compelling case has been made for a delay on adviser charging. We hope that the financial adviser community should not need a delay in order to obtain the relevant qualifications.”