Past Feedback Statement

The Feedback Statement follows two years of consultation between our industry and the FSA on the future of the Retail Savings Market. Amanda Bowe who heads up the FSA's team has said: "this is not the final word on the way forward but consultations will now focus on the detail of implementation rather than the principles set out".

In its Feedback Statement the FSA has reaffirmed its key objectives for the RDR:

• Improving the clarity for consumers on the characteristics of the different service types and the distinctions between them.
• Raise professional standards.
• Remove the conflicts of interest inherent in remuneration practices and improve the transparency of the cost of all advisory services.

The key changes contained within the Feedback Statement include:

• A more refined market structure from the April Interim report which sees an overlap of 'Advice' and 'Sales' services with a new service referred to as 'Sales Advice' in which tied and multi-tied advisers can operate.
• Higher Professional Standards and Remuneration Transparency (earlier referred to as Customer Agreed Remuneration) will apply to 'Advice' and 'Sales Advice' to ensure there is a level playing field.
• Within 'Sales Advice' there will be a new simplified advice process referred to as 'Guided Sales'. This term replaces previous proposals for Primary Advice and Assisted Purchase and alongside this structure the current Basic Advice regulations will be withdrawn.
• The FSA is reviewing the term 'Independent' to ensure that firms calling themselves this only offer truly independent services.
• Higher Professional Standards through compulsory qualifications for all advisers at QCA level 4 and the introduction of a new Professional Standards Board which will initially develop and implement a code of conduct for advisers and potentially at a later stage be involved in monitoring adviser conduct on behalf of the FSA.
• Reinforcing the importance of the new 'Money Guidance' service along with the pilot of the 'Money Guidance pathfinder' service which will be piloted in the North East and North West at the beginning of 2009 to improve the general level of financial awareness of consumers.

Read our guide to principles on the FSA's RDR Full Feedback Statement:

Bringing RDR into focus [PDF 271K]