A third of fund providers believe the Financial Services Authority (FSA) will be forced to delay the implementation of the retail distribution review (RDR) past the December 31, 2012, deadline.
A Fidelity FundsNetwork survey of 19 major fund firms shows 32% expect delays, although 100% believe the RDR will be implemented.
Ed Dymott, the head of UK fund partners at Fidelity International, says: “All fund groups have now got to the point where they believe this is going to happen. Twelve months ago, there was lots of discussion but we have definitely seen a shift in thinking.” (article continues below)
Some 32% believe the RDR will trigger a reduction in the size of the platform market while 26% believe it will continue at its current rate and 37% believe the RDR will increase the platform market size.
About one-third of fund firms believe they already have the share classes required to support the rules on charging structures required under the RDR.