Retail Distribution Review

Written evidence submitted by Concept Financial Planning

I am very much supportive of RDR – the implementation needs more consideration;

A transparent and fairer charging structure

I believe RDR does go some way in achieving this – however, I would like full implementation by product providers in order to facilitate a clear transparent process.  The back track on bundled and unbundled does not promote confidence – I firmly believe that the fund management world should be unbundled therefore giving greater confidence to consumers that they know what they are paying for – fund charge for the fund management group whether active or passive / wrapper charge – price for using the tax wrapper / advice charge – whether this be for initial advice and / or on-going advice – thus making absolutely clear to the consumer how much it piece costs and they can then determine the value gained.

A better qualification framework for advisers

Completely agree, however, consideration should be given to the fact that you are able to pass an exam does make you a good financial planner – there are a number of skills needed to become an excellent financial planner – and these cannot be measured by exams only.  

Wider consumer understanding of the role of a financial planner and the benefits that can be obtained

Greater clarity around the type of advice being offered

Totally agree, it should also be remembered that should no advice be given it should be made clear, in terms of protection rules.  Consumers should be able to understand between advice and no advice – the risks involved in taking either one of the options and the price.  On no account should terms like restricted advice be used – one set of rules for each – therefore creating better understanding for consumers.

In summary;

Unbundled charging

Exams stay QCA level 4 – but uniformed

Clear charging structure designed by the client and the planner

Advice or No advice – clear outcomes for the consumer

I trust this helps the committee, however should you require further information of personal representation please do not hesitate to contact me.

January 2011