In her speech at the Financial Services Distribution Summit, Amanda Bowe (Head of Department, Retail Distribution) discusses the Discussion Paper 07/1: Review of Retail Distribution (DP07/1). She notes that in DP07/1 some areas have been misunderstood:
- Qualification and professionalism. Here she notes that the FSA wants to see the right balance between the qualifications required doing the job, and the experience and knowledge gained whilst doing it. The FSA is interested in a range of things that constitute professionalism.
- Remuneration. Here she notes that the proposals in DP07/1 are not to determine how every adviser in the marketplace is remunerated.
The proposals in DP07/1 aim to shift the debate away from fees vs commission, recognising developing market practices such as the advent of wraps as well as appreciating how consumers behave. The FSA wants to remove the potential for bias from provider-based remuneration.
In the speech she also focuses on:
- Prudential requirements.
- Primary advice.
She finally notes that the FSA aim to publish the responses of DP07/1 along with a feedback statement in Q2 2008 together with the results of the FSA’s research into demand and supply issues and the potential impact on firms.
View Examining the FSA’s Retail Distribution Review: an update, 4 September 2007