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Northern insights: has RDR really made things better?
by Elsa Buchanan on Sep 19, 2013 at 13:24
As MPs called for a review of the retail distribution review (RDR), we asked wealth managers to make their assessment of whether the regulatory changes have changed the industry for the better.
Chaired by Wealth Manager director Charlie Parker at Citywire North, the annual gathering of key regional wealth managers in Harrogate’s Rudding Park, the effects of the RDR were high on the agenda of the debate and here’s what they had to say.
Dave McCabe, director at Five Point Consulting, asked the Financial Conduct Authority to ‘stop the constant changing or reviewing of the industry as a whole and just let everybody settle down and bed in’. Stressing that part of the FCA’s remit is to engender confidence, he takes the view that constant changing makes a mockery of that.
Meanwhile, Louise Oliver, founder of Taylor Oliver, questioned the advice gap left by RDR.
‘There are about 45 million people that sit in these gaps from the fallout from the banks, and really it’s thinking of a cost effective solution to deliver to those people who might just want to do an ISA allowance.
‘The FCA has missed it. They have missed the fact that it is now advice for the wealthy.’
As the debate turned to taxonomy and the FCA’s definition of the term ‘affluent’, Equilibrium investment manager Mike Deverell (pictured) told his peers RDR could help restore trust in financial services, as clients ‘get to know what advisers do, and that they have paid for it appropriately’.
‘But that is if we take a long-term view, [because] in the short term that is a bit of a negative, as there is more publicity about the old style commission-hungry IFA.’
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