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A Landmark Moment For The Financial Services Industry - by Frank Cozzo

The implementation of the Retail Distribution Review (RDR) is now only weeks away coming in to effect on 31 December 2012. This will be a landmark moment for the financial services industry and without doubt the most comprehensive reform of the financial services industry in decades. Why Is This Important For investors? Currently adviser firms giving advice on investment products can earn different levels of commission from this advice depending on product and provider recommended. Under RDR rules the FSA wants to ensure that there is no inappropriate bias toward a particular product or particular provider and to ensure that advisers are not incentivised e.g. through higher commissions, to recommend a particular product ahead of another more suitable or equally suitable investment product.

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