What is the RDR?
The Retail Distribution Review (RDR) is a framework of requirements and regulations created by the Financial Services Authority (FSA) to address certain long-standing problems with how the financial service industry operates and, at the same time, prepare retail investment advisers for the future.
The FSA has set out three measures that they regard as the most important in delivering specific market outcomes that will, in turn, fundamentally improve the interactions between the investment industry and its customers.
These are:
• Improve the clarity with which firms describe their services to consumers.
• Address the potential for adviser remuneration to distort consumer outcomes.
• Increase the professional standards of investment advisers.
As the FSA develops the requirements that advisers must meet under the RDR, the focus centres around three aspects: qualification, CPD and ethical standards.
Where we are now.
The RDR has now been finalised by the FSA and exam bodies have aligned their qualifications to the new standards. The policy statement, PS 11/01 "Distribution of retail investments: Delivering the RDR - professionalism" put the final touches to this transition. Despite recent proposals on restructuring the regulators of the financial services industry, the FSA have stated that their commitment to the RDR has never been stronger.
The new association formed through the FSA’s disassembly will continue to embed the RDR in the financial services industry while remaining undeterred and headstrong in its efforts to achieve success and full implementation by 31 December 2012.
With that in mind, both the FSA and 7city Learning suggest that those affected by the RDR take the necessary steps to becoming RDR compliant sooner rather than later, to allow for any unseen complications and to avoid the last-minute rush expected before the deadline.
Find out more
Watch a recording giving an overview of the RDR and the qualification routes available
Download slide pack
Please click here to download a pdf of the Knowledge bite slide pack to accompany the recording above and here to download the RDR pathways summary