Andrew Tyrie has said that his influential Treasury Select Committee will not launch an investigation into the Retail Distribution Review until at least 2015 in order to allow for the full effects of the changes to be understood.
Speaking at the Association of Professional Financial Advisers annual gala dinner in London last night (27 November), Mr Tyrie referenced the Treasury Committee’s battles with the then Financial Services Authority over its recommendation that the new rules be delayed in order to assess the likely effect on firm numbers.
The recommendations, made in 2011, included a delay to implementation and case-by-case ‘grandfathering’ for long-standing advisers. The regulator drew ire from the industry and the TSC itself when it responded to the embargoed report with an embargoed press statement rejecting the proposals.
Mr Tyrie, the Conservative MP for Chichester, echoed earlier statements from Apfa chairman Lord Deben that adviser numbers had indeed fallen in the lead up to the RDR and expressed concern on the effects this would have on “access to advice an competition”.
However, he cited comments made by Apfa director-general Chris Hannant that the full effects of the RDR would not be known for at least two years, saying that until this had passed and the new regulator has been able to complete its thematic reviews it would not be appropriate for the TSC to launch an inquiry.
Earlier this year, rumours had surfaced that the Treasury Committee might be imminently launching a review into the changes. Committee member Mark Garnier said at the time that any review would no be until at least the middle of 2014, though it would now not be until a year later at the earliest.
Mr Tyrie used his speech to reiterate criticisms of the previous regulator, saying there had been “far too much box ticking and mindless data collection” when demanding information from the regulated community.
Mr Tyrie also called on advisers to come forward and report instances of bad practice, admitting that many people had complained to him and his colleagues over issues but do not bring evidence that the committee can use to “hold the regulator to account”.
He said: ““Parliament must hold regulators to account to get that balance right. It’s parliaments job to help balance out those conflicting pressures. But it’s also up to the industry to tell us what’s going on in this market.
“Find a way to get that information to us in a form we can use.”
