The tone and route map for the future
The publication last week by the Financial Services Authority of a Policy Statement on the subject of the Retail Distribution Review (RDR) sets both the tone for and the route map of the intermediary firm of the future.
The required combination of the abolition of commission for investment and pension products coupled with the attainment of higher educational requirements for advisers are two key building blocks for the evolving intermediary profession.
At Informed Choice we have long held the view that the entry level qualifications for advisers are far too basic.
Many of our peers claim that experience is more important than qualifications. We disagree.
It is the combination of relevant experience, tested knowledge through qualifications and applied skill that matters not one attribute in isolation.
We are also strong advocates of clarity.
Whilst we accept that there is little, other than anecdotal evidence of, commission bias we much prefer the clarity introduced by “Adviser Charging” and absolutely prefer the unbundled approach of the separation of advice from the implementation of financial product solutions.
We are also strongly against opaque products that seek to disguise consumer charges.
We are positive that those IFAs who embrace the RDR changes can look forward to a promising future.