Sesame's Martin slams RDR sales adviser route as 'Frankenstein' creation

Sesame non-execurtive chairman Ivan Martin has branded the sales advice channel a 'Frankenstein' creation in criticisms of the retail distribution review (RDR).

Martin questioned if the RDR would improve the profession while calling for a long-stop on complaints and grand fathering for experienced advisers.

The Financial Services Authority (FSA)  must be 'courageous' and create a 15-year time bar on complaints, said Martin speaking at Sesame's national conference in London.

'The only way advisers can be free of liabilities is to die which is a bit dramatic,' said Martin.

Martin welcomed higher professional standards called for in the RDR but branded the four-year window for advisers to reach diploma level a 'sword of Damocles' measure. A non-academic route for experience advisers was essential to avoid a exodus from the profession, he said.

Martin also lashed out at the FSA's proposal for a professional standards board, warning double regulation would lead to double costs.

Responding Amanda Bowe, head of the RDR, said the proposals were still not 100% right. The RDR and the interim report explained why a stark distinction between sales and advice was not possible, she said.

Bowe said she was personally disappointed she could not introduce a long-stop.