True and Fair calls for tough regulation post-RDR
RDR could be the death knell for mainstream financial advice unless the regulator toughens up regulation and strives for total transparency in the industry.
Posted By: True and Fair, 7:33 pm
That’s the warning from the True and Fair Campaign, which is calling on the incoming Financial Conduct Authority to adopt a six point plan aimed at improving public trust in financial services.
The group wants the new regulator to “demonstrate that it is not a prisoner of the industry” by committing to harsher regulation with “legal force”, rather than delegating power to investment trade bodies,
It is also seeking a code of ethics that insists on complete transparency regarding charges and investments, and those seen to flout such rules should be “named, shamed and prosecuted (if needed)”.
Gina Miller, co-founder of SCM Private and head of the True and Fair Campaign, said: “RDR could potentially result in millions of savers being denied independent advice by the very regulation which was meant to open it up for them. Many will be forced to invest via execution only platforms, frequently characterised by conflicts of interest where fund managers pay the platforms for ‘shelf space’, and where the recommendations frequently mislead consumers into believing they are receiving unbiased and independent advice.”