Retail Distribution Review (RDR)

 

In our original White Paper on the progress of RDR we talked of the analogy of the project being akin to the construction of a Cathedral. We said that it was likely to be years in the making with controversy over its design and with potentially huge implications for the ‘community’ it serves - with more twists and turns yet to come. We also said that the RDR was already outlasting its original architects! Well, the latest twist in the development came on the 25th November when the FSA presented the ‘Feedback Statement’ (08/6). Although delivered by Amanda Bowe who has been responsible for the project so far, it was her ‘swansong’ following the handover process to the recently appointed Jon Pain (Managing Director – Retail Markets).

Our objectives in this document are to give the reader an overview of the story so far and in particular what the latest position is proposing; along with the timetable and next steps. We will explain some of the potential implications and how we can help and support with your existing business models as well as help you through the implications of the transitional process.

RDR background

RDR was originally initiated at the end of 2006 with a number of working groups set up to look at:

• sustainability of the distribution sector
  
• impact of incentives on advice processes
  
• professionalism and reputation of the sector
  
• consumer access to financial products and services
  
• regulatory barriers and enablers for the market solutions

The thoughts and ideas of these groups were brought together in June 2007 with the publication by the FSA of DP07/01.

The paper set out the issues of concern in relation to Retail Investment products and their associated sale, along with the FSA’s objectives and how they felt that these may be achieved.

Many in the industry spent time reading the original Paper and 888 of them formally responded to the FSA over the six months’ consultation period – a good many others expressed their views and emotions in press comments during this period too.

Related Links

• Treating Customers Fairly
  

Useful Documents

• RDR White Paper v3
• RDR White Paper v2
• RDR White Paper v1