RDR support centre
Welcome to our RDR resource centre - dedicated to helping you prepare for 2012. Get the latest industry developments, expert insights and resources to help grow and protect your business.
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Recent FSA communications Read our summaries of important RDR communications, by clicking on the options below. CP09/31: RDR and corporate pensions In the FSA's RDR consultation paper (CP09/31) on 'RDR and corporate pensions', they asked for feedback on how the principles of adviser charging would apply to group personal pensions, group stakeholder pensions and group self-invested personal pensions (referred to collectively as GPPs). This was referred to as a 'consultancy charge'. Following this consultation, the FSA concluded that there was a 'read across' from the investment market to the GPP market. As a result, the FSA have now issued their final set of rules on how consultancy charging will operate. The following provides an outline of the requirements for advisers and product providers: PS10/06: Distribution of retail investments - feedback to CP 09/18 and final rules In this first set of rules, PS10/6, the FSA have confirmed that independent advice will require advisers to consider a wider range of retail investments for a relevant market. Adviser charging is definitely here to stay and the FSA have stated that they will be closely monitoring the market to ensure there are no practices to circumvent this new requirement. Importantly the FSA have also stated that advisers "can only charge ongoing fees for an ongoing service" and that factoring and negative charging will be banned. The FSA have confirmed that there will be a 'line drawn in the sand', in their approach to legacy business. DP10/2: Platforms - delivering the RDR and other issues for discussion In their separate discussion paper on platforms, DP10/2, the FSA have announced that they intend to take a new approach to regulating the use of these systems - their main concern being poor disclosure documentation and lack of clarity of how charges are presented. On the key point of platform remuneration, the FSA have stated its preference as stopping all forms of rebates and payments by product providers to platforms and has stated that "a firm with a varied set of customers is unlikely to be able to use a single platform for all their customers". In their discussion paper on the sale of pure protection, CP10/08, the FSA makes it clear that it wants to ensure that consumers are aware of commission being received either through an advised or non-advised sale if this has occurred within 12 months of investment advice being given by a firm. However, the choices of advice, 'independent' and 'restricted' will not apply to pure protection advice at this stage. |
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