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ABI Retail Distribution Review progress positive but more needed on simplified advice


Responding to the release of the FSA's latest Consultation papers on the Retail Distribution Review (RDR), Maggie Craig, the ABI's acting Director General, said:

 

"We welcome the FSA's continued emphasis on increasing the professionalism of financial advisers.  It is particularly good news for consumers that the FSA will formally recognise the benefits of membership of professional bodies in relation to adviser competence and professionalism."

 

Protection

 

"We are pleased that the FSA has accepted our arguments that adviser charging should not be applied to the protection market purely for the sake of consistency." 

 

Group Personal Pensions (GPP) - Consultancy Charge

 

"It is appropriate that the FSA has applied similar adviser charging rules for individual and group pensions, ensuring a level playing field.  We welcome that the FSA has recognised that this will have a knock-on effect for occupational pension schemes which will have to be addressed."

 

"We now need the FSA to work with the industry on a simplified advice process, that will meet the needs of consumers who are unable to afford, or do not require, full advice. "

 

The ABI has supported the objectives of the RDR since it began in 2006 and continues to believe these changes are essential to rebuild consumer confidence in the retail investment market.

 

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Last updated 01/07/2016