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Wealth firms on alert as FCA's RDR patience runs out

by Dylan Lobo on Apr 08, 2014 at 10:52

‘Part of the confusion may be caused by fee models which look just like commission, but poor communications and the lack of clarity on ongoing services suggest a deeper-rooted issue,' he said  

‘Firms have still not fully understood the transition they have to make from 'selling products' to 'providing an advice service'. 

Firms now have a few months to get their shops in order before the FCA unveils the results of its third and final review into pricing in the third quarter.  


Cultural flaws

Ian Stott, client services director at The Consulting Consortium, warns the FCA’s more aggressive stance could expose cultural issues at firms.

‘The regulator expects firms to be 100% transparent in their service, costs and service delivery, Stott said.

‘If firms are still not getting this simple element correct, the regulator may see this as an indicator of more embedded cultural issues, prompting a more intrusive review into firms’ practices.’  

Stott expects the FCA to renew its focus on how individuals with significant functions at firms run their divisions to ensure customers are treated fairly.

‘To avoid the increased regulatory scrutiny that this could bring, firms will have to tighten process, improve oversight and focus on training their front line to deliver a more transparent service.’

Kerr believes wealth and advisory firms across the board should prepare for a more interventionist stance from the FCA.    

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1 comment so far. Why not have your say?


Apr 08, 2014 at 12:53

Surely the industry requires a regulator to move culturally speaking in the same direction or at least in tandem with the operators of the market? This 73% is hardly an endorsement of RDR and the anti-competitive doctrines that it represents. It begs the question what the '000s of compliance personnel have been doing since the whole RDR debacle commenced in 2005.

Who's regulating the compliance industry?

Who was it that said?


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