The FSA has issued a press statement in relation to the enhanced standards people can expect from all investment advisers as a result of the proposals contained in Consultation Paper 09/18: Distribution of retail investments: Delivering the RDR (CP09/18).
The principal benefits the new rules seek to deliver to savers and investors are:
- Independent advice that is truly independent and reflects investors’ needs.
- People can clearly identify and understand the service they are being offered.
- Commission-bias is removed from the system – and recommendations made by advisers are not influenced by product providers.
- Investors know up-front how much advice is going to cost and how they will pay for it.
- All investment advisers will be qualified to a new, higher level, regarded as equivalent to the first year of a degree.
The FSA regards the RDR as “a significant opportunity for firms and individuals in the retail investment market to modernise practices, raise standards and improve the way they treat their customers”.
Jon Pain, FSA managing director of retail markets, said:
"The RDR is about regaining consumer trust and confidence in the retail investment market, building a more sustainable sector and making it easier for people to find their way around and get the help they need – this is more important now than ever before.
We have today set out the specific changes we propose to make to implement our far-reaching package of measures. This is a call to action for the industry - all investment advisers need to consider how they will respond and implement these wide-ranging and challenging improvements by the 2012 deadline.
Throughout this process there has been close involvement of the industry and consumer groups, and we look forward to stakeholders’ continued engagement and to receiving their views on the detailed proposals we are setting out today."