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Daily Insurance Industry News
Thursday 18th of January 2018
November 2, 2009

ABI calls for swift action on RDR clarification

by Gill Montia

Story link: ABI calls for swift action on RDR clarification

The Association of British Insurers (ABI) has called on the Financial Services Authority (FSA) to “act quickly” to ensure the full benefits of the Retail Distribution Review (RDR) are secured.

The regulator has plans to replace commission with adviser charging, and also intends to raise the professional standards of financial advisers.

However, the ABI has pointed out that the reforms could restrict consumer access to advice and says it wants to develop a simplified advice processes to meet the needs of consumers who are unable to afford, or do not require, full advice.

According to the Association, greater certainty is need now from both the FSA and the Financial Ombudsman Service on how such a service would be judged.

If, for example, an adviser offering a simplified service needs the same qualifications as a full financial adviser, the service may not be deliverable at an affordable price.

The ABI’s director of life and savings, Maggie Craig, says: “As we get closer to the introduction of RDR reforms in 2012, the FSA must realise that firms need clear rules and guidance now.”

She adds: “Given direction, firms can develop simplified advice processes, ensuring as many people as possible have access to financial advice.”

 

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