Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Apcims: 'messy' and 'confusing' RDR should allow grandfathering

3 Comments
Apcims: 'messy' and 'confusing' RDR should allow grandfathering

The Association of Private Client Investment Managers and Stockbrokers (Apcims), disapproves of the FSA's decision to not allow grandfathering for the retail distribution review (RDR) and questions whether adviser charging will bring enough transparency.

Apcims' chief Tim May said that while the trade body supports many of the RDR's aims, such as greater professionalism, it believes there are missed opportunities. He said the lack of grandfathering as part of the regulation will mean that clients lose 'trusted, experienced advisers across the market place'.

May described aspects of the RDR as 'messy and confusing' from the consumer's perspective and expect modification may be necessary later down the line. For example, he questions whether the FSA's proposals to introduce transparent charging for advice really extends to full transparency and asks whether consumers fully understand fund pricing.

May also pointed to potential discrepancies between the RDR and the oncoming Mifid II and the potential for amendments to some of the key points underpinning the RDR.

'MIFID II remains the elephant in the room as there is no equivalent concept of restricted advisers in the text and trail commission is, in the latest parliamentary text, proposed to be disclosed but not necessarily banned for both discretionary portfolios and advice – the exact opposite to RDR. Submissions have been made to protect RDR and the latest Council text bans all trail, but no-one knows where this will end up.'

In a similar vein, the trade body also highlights a growing regulatory burden which its members are facing, and said a 'positive move in the change over to the Financial Conduct Authority (FCA) would be to mirror the successful government initiative of ‘one in one out’ - or even ‘one in two out’ - for regulations'.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter