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The FSA’s Retail Distribution Review (RDR) has been designed to address fundamental problems and restore the confidence of the investment customer. All IFA’s need to be compliant by 31st December 2012. What exactly does this mean to you as an IFA? Will you be compliant by the deadline? And how can Sterling McCall help?
The purpose of the RDR
The purpose of RDR is to improve the consumer experience of the financial services industry by simplifying the way products and advice are distributed in an attempt to increase the number of people who buy and use them. Implemented by the Financial Services Authority (FSA) it covers the entire industry from firms that create products to those that advise and sell them.
As far as an IFA is concerned RDR will allow you to offer your clients advice and access to the whole of the market and being paid on a commission basis that is agreed by the consumer. You'll also be able to boast higher levels of qualifications and you'll become a member of a recognised body.
But at what cost?
In order to meet the requirements under the current strategy there is a great deal of debate within the industry about the cost to IFAs of obtaining the new qualifications as well as putting the compliant financial systems in place. There is also concern about the significant number of IFAs who may decide to leave the industry because the costs are too high, the implementation is too difficult or they may be approaching retirement age and they're wondering whether it's worth it.
If you fall into the latter IFA category there are two ways in which we might be able to help:
Through our innovative IFA fund management product Hindsight we can offer a fully RDR compliant platform in which to run your IFA practice. Click here to take a look at Hindsight.
If you're thinking about an exit strategy and the best way to maximise the assets and goodwill within your company we may be able to offer a range of different buy out options to help you in the most appropriate way to leave the industry.
Click here to find out more about exit strategies.
