FSA is consulting on how to implement the RDR. It plans rules to ensure:
- the independence and suitability of independent advice;
- ease of consumer understanding of services;
- there is no commission bias left in the system and product providers do not influence advisers;
- investors know about the costs and manner of payment for advice at the outset; and
- advisers are better qualified.
FSA recognises the reforms are challenging but wants advisers to consider how they will meet the new standards. The paper includes a timetable for consultations on other aspects of the RDR and includes proposed rule amendments, mainly to Chapter 6 of COBS. It also includes a draft Article 4 notification to the Commission, explaining why UK rules are superequivalent to MiFID in this area.