Peter Smith, Head of Investments Policy at the Financial Service Agency, says preparing and implementing the RDR is well underway.
The FSA says it has seen significant progress from advisers and firms:
-
91% of all retail investment advisers (including advisers within IFAs, banks and building societies) are either already qualified or expect to qualify by December 2012.
-
87% of advisers who have attended the FSA roadshows said they have either implemented or are implementing their charging structure.
The FSA has finalised a number of rules and published guidance on a number of areas to ensure firms have the information they need to implement the RDR successfully. This includes rules confirming that payment of trail commission can continue for pre-RDR advice, and that trail commission can be re-registered to a different adviser where the customer moves to a new adviser; the rules were published on 8 November. The FSA is also consulting on guidance clarifying the treatment of legacy assets; the Consultation Paper was published on 16 November.
The FSA has also added an initial list of accredited bodies to the Handbook. They are:
-
CFA Society of the UK
-
The Chartered Institute for Securities and Investments (CISI)
-
The Chartered Institute of Bankers in Scotland (CIOBS)
-
The Chartered Insurance Institute (CII)
-
The Institute of Financial Planning (IFP)
-
The Institute of Financial Services (IFS).
Firms and advisers can start to engage with these bodies in their new capacity as accredited bodies. Accredited bodies will play an important role in verifying that advisers are meeting the FSA's new professionalism requirements. These bodies may also support advisers in meeting the professionalism standards, such as on qualification gap-fill, structured and un-structured CPD or for ethical behaviour.
All advisers will require a statement of professional standing (SPS) to demonstrate they have the appropriate qualifications and meet the continuing professional development and ethics requirements of RDR. To calm any concerns advisers may have about getting their SPS, the FSA said: "There has been some concern amongst the industry that advisers may not receive their SPS before 31 December 2012. We have allowed some flexibility for the issuing of the annual SPS, in that firms have 60 days from 31 December 2012 to get the independent verification needed."
Newsletter
© FSA - Financial Services Authority
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article