FSA concern over last minute RDR planning

FSA Sky Angular 480

The FSA is anxious some advisers have left developing their RDR propositions until the last minute, with not enough time to design a sustainable business model.

Speaking at an Association of British Insurers RDR conference in London this week, FSA head of investment policy David Geale said the regulator recognises the amount of work firms have done to be RDR ready.

Geale said the FSA has seen evidence of good practice, with firms testing different RDR propositions with their clients and carrying out client segmentation where appropriate.

But he said: “Clearly, there is more work to do in this area and some firms frankly have not devoted the necessary time and energy early on to decide on a proposition that is sustainable over the long-term and that ultimately will give them a profitable model enabling them to stay in business. Clearly, with such little time left, this is a concern for us as well as for those firms and providers.”

Separately, Geale sought to clarify that firms will not be able to passport in to the UK in order to sidestep the RDR.

He said the terms under which advisers can offer services to UK customers from another European country state the firm may not conduct business if it is doing so purely to evade rules in their host member state.