12th May 2008
Overview of the FSA’s interim statement
Overview of the FSA’s interim statement
The latest stage in the FSA’s Retail Distribution Review (RDR) was announced recently. We recognise the importance of this review and are aware of the potential impact it could have on the distribution of financial services products.
Robert Kerr, Head of Distribution Development at Scottish Widows, has written a summary of the report. In it he addresses some of the key questions, including independence, professionalism, customer-agreed remuneration and long-stop on contingent liabilities.
The proposals in the Interim Report would significantly simplify the market landscape and would be split as follows:
- Advice — Independent advisers who recommend products from across the whole of the market must meet minimum professional standards. This means that advisers’ remuneration would not be determined by product providers.
- Sales — Sales means services that are strictly non-advised. These services are intended to encourage higher levels of savings and protection so that the needs of more consumers are met.
- Money Guidance — There will be a national service offering free and impartial information and guidance on all money matters as recommended by the Thoresen Review of Generic Financial Advice.
A full copy of the FSA’s review can be found at www.fsa.gov.uk.
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