Advisers Divided Over Benefits of Regulation

One year after the implementation of regulation which changed the way advisers do business and how they charge investors, advisers are divided over its effect

Emma Wall 11 December, 2013 | 12:26PM
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Advisers are divided over the impact of regulation implemented a year ago to help uniform the industry. The Retail Distribution Review (RDR) came into force on December 31.

RDR banned advisers from taking commission for selling products and instead said that that all fees, paid only by clients, had to be agreed in advance. All financial advisers now have to carry at least a QCF Level 4 qualification in order to practise, and offer investors the full suite of assets and products in order to retain the "independent" tag. 

Reception has been mixed among both advisers and investors for RDR. Schroders Adviser Survey revealed that advisers felt there had been some negative impacts of RD - including increased costs and increased administration and regulation. 

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About Author

Emma Wall  is former Senior International Editor for Morningstar