Two years after the introduction of the Retail Distribution Review (RDR) to improve the retail investment market for consumers, the Financial Conduct Authority (FCA) has published the results of a first post-implementation review of the new rules.
The review, which was conducted by Europe Economics, shows that:
- Commissions are no longer an influencing factor when recommending financial products. As such, products with high pre-RDR commissions were recommended less often whereas the sales numbers of products with low or no pre-RDR commission increased.
- Financial advisors more often acquire further qualifications, pointing to a general professionalization of the sector.
- The impact of the RDR on prices is mixed: While prices for platforms and products declined, advisor charges remained largely unchanged.
- The RDR had no impact on the general availability of advice.
Martin Wheatley, FCA chief executive said: “These are positive signs but we know there is more to do. For example, early next year we’ll be looking at how we might encourage better disclosure of information to consumers.”
Further information can be found here.
Source: Financial Conduct Authority (FCA)