Daily Insurance Industry News
 
 
Daily Insurance Industry News
Sunday 25th of February 2018
July 18, 2011

Year’s grace needed on RDR compliance

by Gill Montia

Story link: Year’s grace needed on RDR compliance

MPs are calling for a delay in the introduction of the Retail Distribution Review (RDR) proposals that will see a ban on commission on advised sales, and higher professional standards for independent financial advisers.

The proposals are due to come into force on 1st January 2013 but the Commons Treasury Committee is advocating a year’s grace to avoid an “exodus” of experienced advisers from the market.

Committee chair, Andrew Tyrie MP, comments: “Given the past problems of mis-selling we welcome the banning of commission and the introduction of a clear market price for advice; however, the current timetable for reform risks putting large numbers of experienced financial advisers out of business.”

He adds: “In the interests of consumers we are calling on the FSA to delay the RDR by a year to give advisers more time to take the qualifications and comply with the rules.”

 

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