Large advice firms, like nationals and networks, have been slow to adapt to the retail distribution review (RDR), according to the chief executive of the Financial Conduct Authority (FCA) Martin Wheatley.
Speaking at the final annual meeting of the Financial Services Authority, Wheatley said the regulator had been encouraged by the progress small firms had made with the RDR, but that larger ‘distributors’ had reacted slowly.
‘To be completely honest we expected the industry to... react but what we have been more surprised by is by the larger institutions to be slow to do that,’ he said.
'What we've had with the larger retail distributors is a slowness to revert to models that are RDR compliant. That is something [that] is still evolving now.'
Wheatley (pictured) said the FCA did not see the RDR as an end in itself and would continue to look at regulation around platforms and legacy business.
'Things like platforms and legacy business we will continue to think about,’ he said. 'Frankly we always said that the RDR was not an end in itself. They're a set of rules which we will need to continue to evolve.’
He said that a number of the RDR objectives were being delivered but it was too early to tell whether it had been a success.