The Financial Services Authority (FSA) has released industry figures to lead the working groups of its Retail Distribution Review (RDR) to identify market solutions to core problems within the retail investment market.
The RDR’s five key priorities and chairs of each group are:
1. Sustainability of the distribution sector: Jo Dawson, Chief Executive, Insurance and Investment Division, HBOS Group2. Impact of incentives: Mike Yardley, Group Chief Executive, Royal London Group3. Professionalism and reputation: Roderic Rennison, Group Corporate Director, Thinc Group4. Consumer access to financial products and services: Otto Thoresen, Chief Executive, AEGON UK5. Regulatory barriers and enablers: Dan Waters, Director of Retail Policy, FSA
The role of each industry group is to reach broad consensus on the issues to be addressed; to identify both industry solutions and key barriers to delivering these solutions; and to engage the distribution market, as far as possible, in the achievement of these solutions.
“The Retail Distribution Review will act as a catalyst to improve the efficiency of the distribution of retail investment products and achieve better outcomes for consumers as a result,” says Clive Briault, the Managing Director of Retail Markets at the FSA. “The appointment of industry leaders is an important step forward in achieving that. The industry has serious challenges to face from economic and market pressures as well as from complying with regulatory standards. The review will consider the bigger picture and the five priorities will not be viewed in isolation. We favour market solutions and are looking to facilitate an industry-led outcome.”
Membership of the groups will comprise of industry practitioners from all types and sizes of firms in the distribution sector, along with other stakeholders and senior FSA staff. The groups will meet from January onwards. Key issues raised and suggested solutions will be fed into a Discussion Paper due to be published mid 2007.