The Retail Distribution Review (RDR) and a similar regulatory upheaval in Australia represent the most significant changes to the global financial advice industry in 2013, according to an influential US report.
Analysts for the Aite Group cited the move to a "fee-for-service" model in the UK in January and a comparable shift due to take place in Australia from July as huge developments for the sector. "Commissions and inducements from product providers [have been] banned, and advisers can only charge clients an ongoing fee if they provide an ongoing service", writes Aite analyst Sophie Schmitt.
The five core fiduciary principles include: putting the client's best interests first; acting with prudence, that is, with the skill, care, diligence and good judgment of a professional; and a promise not to mislead clients.
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