The Association of British Insurers gave the Financial Services Authorities April report on the Retail Distribution Review a mixed review, commending the intent while urging changes to the FSA’s plans.
ABI says the RDR should lead to better access to financial advice for consumers, an important opportunity, says ABI Director General Stephen Haddrill.
“The FSA is on the right track with its proposals for clearer payment structures for advisers, and increased professionalism. But it must rethink its ideas on who will be authorised to provide financial advice. We believe that all suitably professional and transparently remunerated advisers should be allowed to provide advice and give product recommendations not just those who offer products from the whole market. We must not risk reducing consumer access to high quality advice by restricting its supply,” Haddrill says.
The report contained three challenges, including pushing product providers to change their business models so that they do not determine how much advisers are paid, develop and implement an agreed common framework for professional standards and present propositions to us for new sales services.
The full report is scheduled to be released next month.