The FSA has published Consultation Paper 09/31: Delivering the Retail Distribution Review: Professionalism; Corporate pensions; and Applicability of RDR proposals to pure protection advice (CP09/31).
In CP09/31 the FSA addresses the commitments it made in Consultation Paper 09/18: Distribution of retail investments: Delivering the RDR (CP09/18) to consult further in the areas of governance of professional standards, corporate pensions and pure protection. These issues are set out in one place (CP09/31) as the FSA wants to make it easier for interested parties to see the complete Retail Distribution Review (RDR) picture.
Key issues in CP09/31 are:
- Professionalism. The main proposal is that the FSA and not a new statutory body should perform the governance function. In response to feedback on CP09/18 the FSA is providing greater clarity for investment advisors on what they need to do to meet the future qualifications requirements. The FSA also sets out its decision to be more flexible in its approach to alternative assessments for existing investment advisors.
- Corporate pensions. The FSA proposes to introduce consultancy charging in the corporate pensions market to take effect at the end of 2012. The FSA sets out its analysis of the responses to the proposals in CP09/18 in this area as well as a cost benefit analysis and draft FSA Handbook text.
- Applicability of RDR proposals to pure protection advice. The FSA’s main conclusion is that it should consider further reading across adviser service labelling, but that adviser charging should not apply. The FSA also asks for views on whether elements of professional standards should apply to advice on pure protection products.
The deadline for comments on CP09/31 is 16 March 2010.
View Consultation Paper 09/31: Delivering the Retail Distribution Review, 16 December 2009