The FSA sets what becomes a well-established precedent by delaying the publication of a RDR paper. The feedback statement on its first RDR paper, which was promised for the second quarter of 2008, emerges. It refines its plans for the division of the advice market, distinguishing between independent advice and sales advice, meaning tied and multi-tied firms would be allowed to continue. Higher qualification requirements would apply to both, but the commission ban would only apply to independent advisers under its plans, with sales advisers being required only to ‘show clearly the cost of their advice’.
Jon Pain (pictured), FSA managing director of retail markets, says the RDR represents a ‘golden opportunity’ for financial services to regain consumer trust.