In July 2013, we published our first set of findings looking at how firms and advisers were implementing the Retail Distribution Review (RDR). We have recently completed the second cycle of this work.
This cycle focused on two distinct areas:
We published our findings on delivering independent advice in March 2014.
We found that 73% of firms failed to correctly provide the required information on the cost of advice. Further failings were identified in relation to the type of service they offer (independent or restricted) and what on-going services they would provide.
In particular, we found:
Given the previous communications issued (factsheet and good and poor practice in our first thematic report) and the straightforward nature of the requirements in this area, we believe significant improvements should have been made since our last report.
We have produced a video setting out the requirements and our expectations of firms on disclosure.
The third cycle of our thematic review will start early in the third quarter of 2014. If we find substantial failings in this cycle it is likely that we will take further regulatory action.
Our next programme of Positive Compliance workshops will focus on Centralised Investment Propositions and the RDR. Within the RDR session, we will discuss the results of this thematic review. Full details of locations, dates and how to book will be available shortly
To assist firms in meeting the disclosure requirements introduced, we have published an assessment tool and supporting guidance ahead of cycle 3 of our thematic reviews.
Copyright © 2016 FCA. All Rights Reserved.