fsa plans thematic reviews into rdr

The Financial Services Authority (FSA) intends to carry out four thematic reviews this year to ensure the implementation of RDR went as planned.

fsa plans thematic reviews into rdr


The reviews, which are expected to start later this month, will examine professionalism, adviser charging structures, how advice is described and  market distortions. They will be carried out in phases with each issue being periodically revisited.

The examination into professionalism is designed to ensure that advisers are fully qualified as set out under RDR and to make sure that all those giving personal recommendations meets the expected standard.

When looking at charging structures, the watchdog aims to ensure they are fit for purpose as well as being sustainable over the long term. 

Furthermore, the advice description review will cover issues such as the proper labelling of  independent and restrictive, making sure those claiming to be independent truly are and if restricted advisers are communicating their status to clients in their first conversations.

The reviews into distortions in the market will look at examples where behaviour is not complying with the spirit of RDR. An example of this would be the use of non-commission incentives, which could create an unlevel playing field. 

An FSA spokesperson said: “We don’t know exactly what form [market  distortions] may take but we’ll be monitoring it and making sure that what’s panning out in the marketplace is fair for everyone.”



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