What Is The Retail Distribution Review (RDR)?

What Is The Retail Distribution Review

If you are not aware of the Retail Distribution Review (RDR) you are not alone with a recent study by Deloitte claiming that 84% of consumers are completely unaware of what it is.

The Financial Services Authority (FSA) have, for several years now, been undertaking a detailed review of the advice and sale of retail investment products, aimed at improving public trust and confidence in the market and avoiding occurrences of mis-selling scandals that have seemingly plagued the industry caused by unscrupulous advisers.

The result of this is that the RDR will become effective on 1st January 2013 and will affect all financial advisers and consumers seeking advice. It’s aim is to boost transparency across the financial services industry.

Next year advisers will either have to offer totally independent advice or, if they offer restricted advice, clearly explain what restrictions they are under. Warr & Co. IFAs Limited intends to offer the former service as it has always done.

Advisers will have to make clear their costs up-front agreeing in advance how much you will pay for the advice and there are also new technical and ethical standards to which advisers must adhere.

Needless to say Warr & Co IFA Limited. will be fully compliant with the RDR from 1st January 2013 and there will be no dilution in the level of service that you receive.

If you have any queries in this regard please feel free to contact us.