Retail Distribution Review - What do these changes meen?
Published in the Western Morning News, Personal Finance Supplement, Thursday 28th April 2013.
2013 heralded a new dawn for those seeking advice on Personal Financial Planning. The Financial Services Authority (FSA) the statutory body that regulates the industry brought in new rules as a result of a wide review of financial services called the “Retail Distribution Review” (RDR).
The objective of the review was to provide better and more predictable outcomes for people seeking advice on pensions, investments and savings products. These new rules redefined how Financial Advisers engage with their clients and in particular affect the way Advisers can be paid for their advice and services.
A further benefit of the Retail Distribution Review is that new regulation will help to improve and maintain standards of professionalism across the industry. From 2013 all regulated Financial Advisers are required to meet specific professional qualifications in addition to those they already hold and also spend time each year keeping up their Continuous Professional Development.
So have all Adviser firms met the challenge of new regulation? Malcolm Swift, Managing Director of Pavey Group Financial Services who have offices in Exeter and Torquay welcomes these changes. He says “the majority of Financial Adviser firms are dedicated to the client’s best interest and are very good at their jobs. Many had already achieved a high standard of qualifications prior to RDR and many had already taken steps to provide fair and agreed client propositions for both initial and ongoing advice before the start of RDR. These firms, including Pavey Group, are best placed to provide Personal Financial Planning to clients in the future.
The word ‘commission’ has not been favoured in the past. Whist financial advice does not come free of charge RDR will make a positive impact to ensure transparency. As Advisers we must list our services, client propositions and set these out in a clear and precise manner so that you can understand and agree how much you are paying for the advice received.”
Our qualified financial advisers can offer advice and solutions for all aspects of financial planning including; Investments & Savings, Mortgages, Equity Release, Life & health assurance, Income Protection and Pension.
Malcolm Swift, Managing Director, Pavey Group Financial Services: 01803 652030