The Retail Distribution Review (RDR) was a UK-specific examination, conducted by the FSA, of the sale of investment products (including life policies, pensions, funds, and other investment schemes) to retail customers by financial advisers. The review began in June 2006, and concluded with new rules on remuneration published in March 2012, and Final Guidance on advice in June 2012. The new rules came into force on 31 December 2012. The main outcomes of RDR were: new training, accreditation and CPD requirements; a new distinction between "restricted" and "independent" financial advice (where, in the latter case, an adviser must consider all retail investment products available on the market); and a ban on receiving commission from product providers, and a requirement to disclose adviser charges to consumers up front.
The first stage of the FCA’s post-implementation review of the RDR (published in December 2014), together with thematic work regarding the disclosure of ongoing services and charges, has concluded that financial advisers are offering investors an increasingly professional service suited to their individual needs. Martin Wheatley, Chief Executive of the FCA, indicated that in 2015 the FCA will undertake a series of next steps in light of the review’s findings and that a further post-implementation review of the rules will take place in 2017.
Retail Distribution Review (RDR) rules in force.
The Banking Recovery and Resolution Directive (BRRD), published in the Official Journal on 12 June 2014, establishes a framework to deal with the failure of financial institutions. Member States are required to implement the BRRD by 31 December 2014 – except the bail-in tool which needs to be implemented by 1 January 2016. The German BRRD-Transposition Act (Gesetz zur Umsetzung der Richtlinie 2014/59/EU...
The Bank Recovery and Resolution Directive 2014/59/EU (BRRD), originally known as the Recovery and Resolution Directive (RRD), is a minimum harmonisation directive which introduces an EU-wide framework of rules and powers for the recovery and resolution of credit institutions and certain investment firms.
The BRRD will give the relevant authorities wide powers including the ability to disrupt the...
This article looks at the findings of the Retail Distribution Review which introduced, among other things, new information disclosure requirements for financial advisers.
The remuneration of insurance brokers has come under increasing scrutiny in recent years by the Financial Services Authority (“FSA”) as well as European regulators. This is due to the potential for remuneration structures to generate conflicts of interest between brokers and their clients and in some circumstances cause a breach of fiduciary and/or common law duties. Concerns that ‘product provider...
The insurance sector faces a ‘once in a lifetime’ sea change in regulation. In this article we look briefly at some of the current reforms.
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