The ultimate aim of the RDR could be undermined by the FSA asking providers to monitor the activities of advisers, leading industry figures say.
They argue a provider role in adviser supervision could encourage bias in the industry; a situation the RDR is designed to stamp out. A raft of papers from the regulator suggest providers should take part in the monitoring of advisers' charges, as well as other aspects of the business they submit. This includes section 4.20 in the latest RDR consultation paper, which proposes providers monitor adviser charging and be granted the power to decline, or alert the FSA, in cases of "extreme" charging. The Association of IFAs (AIFA) has already raised its objections with the FSA, and seve...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes