PFS issues guidance on post-RDR business models

The Personal Finance Society has developed business framework guidance for member firms to help them plan for a sustainable business model in the post-Retail Distribution Review world.

It claims that it will help firms understand the need to transition to a post-RDR model, understand the mandatory RDR requirements, identify the wider elements of operating successfully in the post-RDR world and identifying how the business may need to change.

Firms must be compliant with the fundamental requirements of RDR by December 2012, but also need to understand the business critical and competitive elements of a business model in order to be ready to operate successfully from 2013, PFS said in a statement.

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In addition, firms must ensure their advisers are RDR-ready and qualified to level four.

The PFS said it can help firms work through the “three key stages” including the requirements to operate, delivering a profitable service to clients and minimising business risks and growing the business by differentiating your offering.