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FSA must review bank advisers' adherence to RDR rules, say MPs
by Daniel Grote on Jul 18, 2011 at 07:43
MPs have urged the Financial Services Authority (FSA) to scutinise bank advisers' adherence to the retail distribution review's (RDR) adviser charging rules.
It said IFAs submitting to its consultation had raised fears that firms with both provider and distribution arms, like banks, could cross-subsidise advice costs from product manufacturing.
The committee urged the FSA to conduct annual reviews on the impact of RDR on such firms.
'We recommend that the FSA (or its successor the Financial Conduct Authority) report after one year, and then yearly, on the impact of the RDR on vertically integrated firms' remuneration structures, indicating breaches that have been found and what remedies the regulator has asked for,' it said.
'Only with such transparency will the IFA community be persuadable that it has not been unfairly impacted by the implementation of the RDR.'
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