RDRessed

The FSA has basically been trying to reform the structure of retail financial services since 2002. Its first effort, implemented in 2005, had only been in place for two years when the regulator re-started the process with the retail distribution review (RDR). Our guide through the thickets of this process has been regular contributor, Adam Samuel.

Adam Samuel BA LLM FCIArb Dip PFS Cert CII(MP & ER), barrister and compliance consultant can be contacted on tel 020 7 323 9171; email AdamSamuel@aol.com, website www.adamsamuel.co.uk His book, “Complaints and Compensation: a Guide to the Financial Services Market”, is available from www.cityandfinancial.com and www.adamsamuel.com.

The fact that the banking systems essentially imploded this summer has not put the FSA off continuing with its latest efforts to re-shape the retail financial services scene. From 2002 to 2005, students of FSA material read that depolarisation was the solution to end the retail financial sector’s ills. Two years later, the FSA had abandoned that view and introduced the notorious DP 07/1. Bizarrely, this would have allowed multi-tied or even tied advisers with some exam passes to call themselves independent. The Interim Statement earlier this year saw the FSA do a complete about-turn, preventing anyone who did not offer whole of market advice from calling themselves an adviser, let alone independent. The clear suspicion was that the banking industry would not take that lying down and that the regulator had not taken legal advice as to the feasibility of its proposals before issuing them. Neither proved entirely unjustified.