We had our interview with the FSA this week on their proposed new supervisory structure looking at businesses from a governance, control and culture perspective.

This was a very interesting experience for us as it would appear to have gone well and it was rewarding to be able to clearly articulate to the regulator what we do, how we do it and what it means for clients.

I’ve seen a raft of changes over the last 30 years in this industry but it finally struck me after our meeting with the FSA this week, that the changes proposed with the Retail Distribution Review are the the most far reaching of all.

The idea of identifying your service to clients rather than how you’ll pick them a product I believe is well beyond a vast number of current IFA businesses.

I also believe if your current adviser is not already in a post RDR position, they will not be able to adapt before the deadline date of the end of 2012.

I finally made the decision this week to fully remove commission from all we do for clients in favour of a advice based fee system and it was an enormous weight off my shoulders.

It frees up the mind to concentrate on the right advice and already I see clients more at ease with a monetary system that defines what the advice costs and not about getting the product sold.

A couple of very serious questions will have to be addresses by clients in a short space of time; will my adviser still be there post RDR and will he have a service that I’m willing to pay for?

If you would like a second opinion on your current arrangements, the type and structure of the advice you are receiving and how you are paying for it, please give me a call.

Roland Oliver

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