While wealth managers are more than aware of RDR – whether they have done anything about it or not is another thing – they may not be as aware of FATCA, another costly piece of legislation that comes in on 1 January next year that they would be equally foolish to ignore.
Discretionaries willingness to establish unitised portfolios has helped push the amount of IFAs outsourcing some or all of their investment process up to 42%, according to Defaqto.
The FSA is now closed… to responses on its consultation paper dealing with legacy assets and their treatment after the RDR rules come into effect. But we have not heard the end of it, not by a long shot.
The IMA has called the FSA’s guidelines on legacy commission post-RDR “unclear and incomplete” and warned they could result in increased costs for investors.
Stephen Gay, director general of the Association of Independent Financial Advisers (AIFA) is leaving the organisation to take up a directorship at the Association of British Insurers (ABI).
The approach of RDR will see the funds industry continue to shrink in 2012, with big-name managers retiring and fund mergers and closures more common, according to Thames River Multi-Capital.
Cazenove’s multi-manager fund range has introduced a new share class with a 0.5% annual management charge.
Its easy to take a swipe at the fund ratings agencies and to scrutinise their ultimate influence on fund selection practices, but Morningstar should be applauded for at least trying something new with its investment trust ratings service.
New Years Day represents one year until the RDR rules are implemented, but unless the FSA gets its act together before Christmas it doesnt look like well be any clearer on whats needed until into 2012.
Prudence, caution, good judgement, maturity and diplomacy were among the synonyms for the word discretion thrown up by my PC this afternoon. Presumably, these are all terms we can also use to describe first-class discretionary managers.
Research from Defaqto points advisers towards those discretionary managers who can offer their clients access to flexible investment propositions.
Behind the vocal resentment and fear for a recurrent fee business model, IFAs’ actions show they are actually in support of RDR, and more than just its principles.
