In response to the news that Andrew Tyrie has criticised the retail distribution review for causing serious problems in the advice market (FTAdviser, 15 March), in my opinion, Mr Tyrie has failed to recognise the root cause of the now high costs of advice.
The basic precepts of the RDR, as approved by Parliament, are reasonable enough. But what has created the cost barriers that are now facing consumers of modest means is the Financial Service Authority’s/Financial Conduct Authority’s endless and ongoing embellishment of those core precepts.
It has exceeded and abused its remit, and it continues to do so. Someone needs to give the reins a good hard yank and force the FCA to recognise the ways in which the industry is struggling to function in the real world. So far, the Financial Advice Market Review does not seem to be getting any closer to this.
Julian Stevens
IFA
Harvest
Bristol
