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Consumer issues
News Release from: Cicero Consulting | Subject: RDR
Edited by the Insidemoneytalk Editorial
Team on 01 May 2008
RDR summary and analysis
In 1985 Hollywood released Back to the Future - and Marty McFly's escapades seem strangely relevant today.
For it was also during 1985 that the then Conservative administration was focused on the start of the passage of the Financial Services Act 1986 whose provisions were to create polarisation Polarisation the clear differentiation between tied and independent advisers survived until the end of 2004 when the regulatory regime allowed the blurring of tied relationships and the creation of a multi tied regime
This article was originally published on Insidemoneytalk on 16 Aug 2007 at 8.00am (UK)
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Iain Anderson, Director and Chief Corporate Counsel at Cicero Consulting comments:
The FSA's DP07/01 which proposed yet another new advice regime was met with a cacophony of varying views which looked set to create an even more blurred retail regulatory landscape.
Yet, in the publication of the FSA's interim report on the RDR a remarkable clarity has emerged.
The desire to clearly delineate 'advice' and 'sales' must be seen as a victory for parts of the current intermediary community who are determined to offer real advice for their clients.
It must also be seen as a victory for all those involved in the training and competence debate who see the RDR as a mechanism to raise standards.
As the FSA points out itself, there are many potential obstacles towards creating a simpler retail distribution regime - not least designating the part of the current 'sales' regime which might legally be construed as advice.
However, I can't help but feel that the FSA has decided that a polarised distribution regime really is the best way of ensuring consumers understand the difference between sales and advice.
It's back to the future it seems.
Great Scott!!.
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