‘Dutch RDR has created adviser gap similar to UK’

The detailhandel beoordeling (retail assessment) came into force in the Netherlands at the beginning of this month.

It forbade commission payments to the country’s approximated 10,000-strong independent advisory community and to its bank advisers. Fees have been limited to 1 per cent of the value of an investment.

Last year Dutch finance minister Jeroen Dijsselbloem said commission payments from product providers to firms which give advice were “not in the best interest of customers”, and warned that fee transparency would be the only means which ensured “these undesirable incentives disappear”.

Article continues after advert

However Ron Klaver, a Dutch-based certified financial planner, has called the new rules “a big problem” which, in a similar consequence of RDR, is pricing many lower earners out of the market.

Mr Klaver, a spokesman for professional body FPSB Nederland which represents the country’s 150 certified financial planners and sister organisation to the UK’s Institute of Financial Planning, said: “A lot of things have changed for our advisory community.

“Advisers and financial planners are not able to claim commission for investment sales anymore, and its a big problem as many people can’t now afford to pay for the advice.

“Some people are now looking to do it themselves but this can bring with it different problems with those who don’t have the knowledge, and it’s already affecting people.”

Industry view:

Steve Gazzard, chief executive of the IFP, said: “We’ll be sharing updates with FPSB Nederland within the next few weeks about developments. Regarding RDR, I’m sceptical about the figures quoted on an adviser gap, just how many people are disenfranchised, and how many people were actually getting advice pre-RDR rather than being sold to.”