Jan/12 – The Retail Distribution Review
The Retail Distribution Review was conducted to look at how consumers can be protected in relation to the financial advice that they receive.
It is implemented on 1st January 2013 so we are getting close to the date where all advisers have to be “RDR ready”.
By this date all Financial Advisers have to:
- Declare whether they offer independent or restricted advice.
- Be qualified to a level determined by the Review. (Known as Level 4 qualifications). These qualifications are broadly equivalent to the first year of an undergraduate degree.
- Not accept commission payments from providers.
Simple Solutions will be offering independent advice; we believe this is the only type of advice that our clients should receive. There should be no restriction on our advice just because we are not truly independent.
Both Don and Rab are making good progress towards Level 4. They are enjoying the challenges of studying for exams and both will admit that the improved knowledge has helped them to ensure their clients are receiving the best advice possible.
Simple Solutions do not accept commission from providers now so we are already complying with this requirement. Our clients pay fees either via an agreed payment from their investment or by direct payment from the client.
Simple Solutions believe that RDR is a positive move that will ensure that our clients and prospective clients of all IFA’s who are RDR ready will receive a quality of advice and service now and going forward.
We believe that it will position our Practice at a level equal to other professions such as solicitors and accountants.
If you would like to discuss how Simple Solutions could hep you please contact us.