The Retail Distribution Review (RDR)

On 1 January 2013, the Financial Services Authority is changing the rules about how financial advisers describe their services and the way consumers pay for them. These changes are commonly known as the ‘Retail Distribution Review’. At the end of this post is the FSA consumer leaflet for your further information.

You’re likely to hear more about this in the media over the next few months – I’ve mentioned it in previous correspondence and I wanted to make sure you heard about it, in full, from me first.

What the new rules mean

Whatever you may hear, these changes do not mean that you’ll have to pay any more in the future for our services or the products we recommend. The new rules are designed to make sure it’s clear what services financial advisers offer, how much we’ll charge you, and that you formally agree to all of this before we give you any new advice.

We’re not planning to make any major changes to either the services we offer, or how much you’ll pay for them because we already explain our services and how much they cost before we start work for our clients.

Therefore our relationship with you will not change in the future.

There’s no need for you to take any action

As you can read on the graphic below, I already provide a service entirely compatible with the new format (and have done for years and years), I hold the necessary qualifications for the business I advise on and I have a statement of professional standing in good order (see below).

Communications from providers

You may also hear directly from your product providers over the next few months. The changes to the rules and how financial advisers operate means they’re likely to make some of changes to their products, especially the older ones.

I should be notified of any changes providers plan to make to your products, so there’s normally no need to tell us if you receive a letter. But if they’re making changes that impact you and you have any concerns please get in touch straight away, I’ll be happy to clarify anything.

Making better financial decisions

What matters is that you do get in touch with me if your plans or circumstances change. Whether there’s been a major event in your life, or you’re reconsidering your plans for the future, we’re here to help you make the right decisions to help achieve your financial goals.

Making the right decisions today can make a huge difference in the future.

Below is the FSA (Financial Services Authority) consumer guide that I enclosed with the letter