Adviser fees and the retail distribution review

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One of the biggest changes to the financial advice will be implemented from 1 January 2013 – The Retail Distribution Review ( RDR)) Having ignored the up-and-coming retail distribution review for quite some time the press finally seems to be discussing the effect of the new rules are likely to have on individuals. The Telegraph, the Observer and the Guardian have published articles which discuss the changes to the new rules that advisers will be forced to put into place from January 2013 and specifically focus on the argument that many consumers will not be willing to pay fees and therefore independent financial advisers will only focus their services on higher value clients.

The lack of discussion is partly to blame for a lack of awareness of the upcoming rule changes and what they will mean to consumers. A recent study by Deloitte claims that 84% of consumers are completely unaware of the retail distribution review.

Many advisers and other financial services professionals have hit out at the financial services authority for not insuring that consumers are aware of the impact of the new rules.

The FSA has stated that they will shortly launch a broad campaign to make sure consumers are aware of the RDR are and its consequences. As this is about to take place in one month is this too little too late?

As a firm of independent financial advice who have been working according to the “new “ rules and charging clients fees for some years, we do not agree that clients will not pay fees for good advice as we know they are already happily doing so.

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