The Financial Service Authority's (FSA) evidence to the Treasury Select Committee (TSC) offers a look at the regulator's most up-to-date thinking on the shape of things pre- and post-RDR.
Qualifications
No grandfathering, on the grounds a blanket grandfathering process either by age or experience would contravene the Equality Act 2010.
No transitional process where advisers would be allowed to continue working under the supervision of an appropriately qualified supervisor, whilst they continued to gain the qualifications. The
FSA argued it had already been lenient enough on qualifications, and that a supervisory approach would not work.
No "formal plan" for Level 6 as standard, but it is being kept "under review".
Overall costs and benefits
The
FSA will measure the success of the RDR using continual monitoring, including consumer research on the confidence and trust that they have in the market. Data from firms estimates the costs for the first five years of the RDR would range from £1.4bn to £1.7bn; an increase from earlier estimates of £0.6bn. It said the potential annual mis-selling for retail investment product new business is about £0.4-0.6bn.
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