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What’s in store in the post-RDR world?

by David Sandham on Nov 13, 2012 at 14:11

What’s in store in the post-RDR world?

With seven weeks to go before the retail distribution review (RDR), what will happen next year? Let’s gaze into the crystal ball and imagine. 

In January, several newspaper articles protest, incoherently, that now consumers must pay for financial advice. In February, a trade magazine claims the RDR, like the Y2K millennium bug, was a storm in a teacup.

In March, a network closes, burdened by reducing membership and increased professional indemnity premiums as past liabilities come home to roost.  

In April, the Financial Conduct Authority (FCA) seeks to clarify its definitions of independent and restricted, and this leads to more confusion than ever.

In May, mergers and acquisitions between adviser firms exceed the total number for the whole of the previous year, but the amount of money paid shrinks by 50%. In June, as the result of a thematic review, the FCA fines several product providers for offering massive marketing allowances to advisers.

In July, a new TV programme on how to do your own financial planning is fronted by Martin Bamford.

In August, Vanguard has record UK fund inflows, and exchange traded fund providers slash their charges.

In September, the FCA yet again delays banning fund manager rebates to platforms. In October, it announces a consultation on regulating paraplanning.

In November, several chartered firms with exceptional quality of service report they are under intense pressure of consumer demand, and raise their fees.

In December, Oxford University announces its first honours degree course in financial planning.

Editor Daniel Grote is away

4 comments so far. Why not have your say?


Nov 13, 2012 at 16:10

based on some of the comments on these blogs, im picturing a scence akin to 'Mad Max beyond the thunderdome'

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Insiders Comment

Nov 13, 2012 at 16:19

After the fiasco whos heads at the FSA will roll??? None im betting as the incompetent Government that has allowed all this to come about reels from its own pathetic inadeqasies.

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Chris Geeson

Nov 13, 2012 at 16:55

A lot less of us doing a lot less business with a lot less clients.

Evening classes for DIY financial services increase massively.

FCA pass on the costs of so many failiures that going bankrupt becomes acceptable business practice at least twice a year for all IFA firms

Banks purchase orphan clients from the big market share providers.

Industry pundits claim it will get worse before it gets better.

Around December last known IFA turns off the light and is never seen again

"Write your own policies and know why" becomes a GCSE subject.

Pension Minister office fitted with revolving door as it saves time

Allied Dunbar re emerge as a viable option to the banks, all jobs come with sheep skin coats and qualify as an allowable expense under new government thrust to get people into financial services.

I will take one bet though and that is we don't look back and say what a great year for IFA's 2013 was.

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Philip Clark

Nov 18, 2012 at 08:44

I find it difficult to know how to comment when the poor grammar, spelling and contextual content of contributors is so evident. I will say however, that I intend to battle on regardless, as fewer people sharing a smaller 'cake', invariably separates the 'wheat from the chaff'

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