Retail Distribution Review

Written evidence submitted by Principal Investment Management

Principal is a private client discretionary investment management firm and a member of the Association of Private Client Investment Managers & Stockbrokers (APCIMS).  Principal has offices in the City of London, Sevenoaks and Bath in Parliamentary constituencies represented by Mark Field, Michael Fallon and Don Foster, respectively.

Further to APCIMS’ written briefing of 26th November to the Treasury Select Committee 2010, we wish to endorse the APCIMS response.  In particular, we would reiterate that the RDR has drawn our sector into a regulatory regime which is, at best, of little benefit and confusing to our clients and difficult for investment management firms to implement.  At worst, the RDR may encourage further mis-selling by advisers who do not have the expertise to advise on higher risk Retail Investment Products and will restrict some clients’ access to our services because we will no longer be able to identify ourselves as giving "independent advice".

January 2011