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Home > Regulation > RDR News & Analysis

By Michael Trudeau and Ashley Wassall | Published Aug 21, 2012

Cheshire IFA distributes RDR checklist for investors

Equilibrium Asset Management has warned investors to make sure their financial advisers are ready for the Retail Distribution Review, publishing a five-point checklist including questions about continuing professional development and relevant qualifications.

In a statement accompanying the checklist the Wilmslow-based firm urged investors to make sure their advisers are ready for the incoming new rules in order to better safeguard their money.

Colin Lawson, managing partner at Equilibrium, said: “RDR is going to rid the industry of commission hungry salesmen posing as IFAs and ensure investors are getting the best advice and service from a qualified financial adviser.

“It’s a great thing for the industry and investors need to be clear on whether their IFAs are RDR compliant to protect themselves and their assets from firms and advisers not equipped for the forthcoming changes.”

As well as outlining the transition from commission to fee-based service, the Equilibrium checklist counsels investors to check their advisers’ qualifications.

Also, Equilibrium recommends investors verify their adviser’s status as either independent or restricted and ensure they are studying to meet the 35 hours per year requirement for continuing professional development.

The checklist in full encourages clients to question their IFA on the following:

1) The fee structure: “An RDR-ready firm should have a transparent charging structure in place, clearly outlining your annual fees and what service you get for paying those fees.”

2) Renewal fees: “Advisers will only be able to be paid for what they do in the future... [and] must have a service agreement in place with you on how much they are going to charge for the year.”

3) Qualifications: “Certain investments and areas of business require advisers to have additional specific qualifications to undertake these actions or even advise on them... thoroughly research the qualifications and professional memberships of any financial adviser.”

4) Independent or restricted: “[Independent advisers] will be able to advise you on all types of products from the whole of the market. Restricted advisers will either specialise in specific areas or offer limited advice on smaller range of products and providers.”

5) CPD: “Don’t be afraid to ask your advisor what topics they are studying as part of their development.”

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