FSA to review key RDR areas in 2013

Advisers will be the subject of four reviews from the FSA this year as the regulator seeks to monitor how the RDR is being implemented.

The regulator will investigate whether advisers have the appropriate qualifications, what charging structures they are using, and how they are communicating their independent or restricted status.

A spokesperson for the FSA said it would also look into potential “distortion” in the market “where the spirit of the RDR has not been applied” - for example by not billing for services properly.

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“People might be coming up with innovations but which are not in the spirit of RDR,” the spokesperson said. “We want to monitor the market to see how people are adapting.”

The reviews will be the FSA’s main focus this year and it has dedicated significant resources to monitoring the advice sector as it adapts to the post-RDR environment.