Only the rich will prosper from RDR
I have just receieved an email from Standard Life outlining changes to its commission statements. It said: “The commission statement will change its name to adviser statement, references to commission in the opening part of the statement will either be removed or replaced with adviser payment.’
It looks like Standard Life is now retail distribution review-ready. The whole of RDR is a joke, a very expensive joke – millions of pounds to change a word from commission to charge.
RDR has not achieved enough compared to the cost. The outcome, as I see it, is that the rich will get a far better deal as there will be more advisers looking for their business. Supply and demand means that prices for advice in this area will go down.
The rest of the market will now be priced out as the cost of giving regulated advice is massive. The masses are now left to buying without advice, and the companies with the best marketing, not products will win. Is it just me or does anyone else see a few problems ahead?
Nigel Tinsdale
Tinsdale Investment Management
Worcestershire