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17 December 2014

The Association of Professional Financial Advisers (APFA) has responded to the first stage of the Financial Conduct Authority’s (FCA) RDR post-implementation review.

 

Chris Hannant, Director General of APFA, said:

“One of the key objectives of RDR was to increase standards and increase professionalism, and it’s encouraging that the FCA has recognised that most advisers have gone beyond the minimum qualifications required.

 

“However, there are still critically important issues which need addressing. We know that there has been a fall in the number of advisers since RDR; at the same time, the FCA’s report cites evidence that the cost of advice has increased. Supply has gone down, so price has gone up. This means some cannot get their products or services at the price they used to. That represents an advice gap.

 

“The industry is doing all it can to find lower cost ways of delivering advice, but the regulator needs to play its part too by reducing regulatory costs. Time and time again advisers tell us the regulatory burden is the number one barrier to innovation. This isn’t about lowering the regulatory barriers; it’s about having a framework which is manageable and proportionate.

 

“We will continue to make the case for a system of regulation which ensures high standards but also allows for innovation, which will improve access to advice for all consumers and encourage more to join the industry in future.”

 

ENDS