FSA efforts on RDR communication an 'insult' to advisers

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Concerns have been expressed about the way in which the Financial Services Authority (FSA) is communicating the Retail Distribution Review (RDR) to consumers.

So far, the FSA has only produced a two-page leaflet on the issue, mainly for advisers to hand out to existing clients, explaining how they will receive a "higher level of expertise".

However, Fay Goddard, chief executive of the Personal Finance Society, is worried the regulator may be undermining advisers who have already put effort in to improve their professionalism.

"It was an insult in the broadest sense in the way it was worded and didn't recognise the journey many advisers have already been on," she said.

"The leaflet disregarded the work already done."

Despite her concerns, she did agree with recent comments from the FSA that advisers also have a role to play in explaining RDR.

"Existing advisers need to be educating their clients along the way. They won't have the same message as the FSA."

Goddard also called for the Money Advice Service (MAS) to do more to educate the general public on the upcoming changes, particularly considering advisers contribute to its budget.

"It is in the government's interest to improve the provision of advice in order to prevent future problems," she explained.

The MAS has previously said it will ramp up its activity around communicating RDR as the deadline approaches.

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