Changes to the way you get financial advice
The Financial Services Authority (FSA) has published a checklist for investors explaining changes to the way they get financial advice, ahead of the implementation of the Retail Distribution Review (RDR) on 31st December.
The changes to financial advice include clearer charges, clearer services and more professional advice.
Advisers will either be independent or restricted from 31st December onwards.
Independent advice means the adviser can provide advice on all of the different types of financial products. Any adviser who cannot do this will be restricted.
Making the point that financial advice has never been free, the FSA explains that these changes will not affect how much the advice will cost. It will however mean advice costs are agreed with the adviser in advance and it will be possible for these fees to be deducted from investments.
The FSA checklist explains that every financial adviser will need to subscribe to the FSA code of practice, hold a higher standard of professional qualification for giving financial advice, spend at least 35 hours a year on continuing professional development, and hold a Statement of Professional Standing (SPS) as evidence they are meeting the new standards.
Here at Informed Choice we are ready for the Retail Distribution Review.
All nine of our Financial Planners already hold a Statement of Professional Standing ahead of the 31st December deadline.
We are committed as a business to continuing to deliver independent financial advice, as we believe this represents the gold standard of advice and is what our clients deserve to receive.
If you have any questions about the Retail Distribution Review and the changes to the way you get financial advice, please do get in touch.