FSA efforts on RDR communication an 'insult' to advisers

clock

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.

More on Regulation

Johnny Timpson criticises DWP's vulnerable customer practices

Johnny Timpson criticises DWP's vulnerable customer practices

Calls for DWP’s approach to be brought in line with regulated sectors

Jaskeet Briah
clock 26 April 2024 • 2 min read
IPT up 11% year on year

IPT up 11% year on year

£8.1bn collected in 23/24

Cameron Roberts
clock 23 April 2024 • 1 min read
Prime Minister Rishi Sunak to end 'sick note culture'

Prime Minister Rishi Sunak to end 'sick note culture'

Reform to the welfare system

Jaskeet Briah
clock 19 April 2024 • 3 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read