21st January 2011

Distribution of Retail investments:

Delivering the RDR – professionalism

Since 1979, the Plain English Campaign has been campaigning against gobbledygook, jargon and misleading public information. They have helped many government departments and other official organisations with their documents, reports and publications believing that everyone should have access to clear and concise information. Many providers have a Crystal mark on their documentation reflecting their support of plain English. Clearly this does not apply to the FSA.

To dissect and digest such a document would take days for most if not all IFAs and I think this is symptomatic of the general willingness of the FSA to shroud what should and could be very simple, informative and straightforward points in legalise and a frankly visually disturbing format.

Only 44 firms and/or organisations have responded. Why so few? How much did this 72-page document cost to research and produce?

It even dwells for 4 pages on an ‘Equality Impact Statement’, why? So much of this and other sections are stating the obvious. Have we as an industry become so dumb that this has to be spelt out or is it that someone at the FSA, in the interests of political correctness and with a resulting responsibility for ‘Equality” matters’ has had to justify their existence.

Whilst this document can be considered helpful in places, the content, layout and language leaves much to be desired in the search for transparency department and goes some way toward supporting the theory held by many as to why RDR costs are out of control.

Finally I note that the FSA says: “When the RDR comes into force in January 2013, the FSA will start collecting information about individual advisers, such as the qualifications they hold and which accredited body they use. I thought that they did that now, or am I wrong?

Adviser Letter of the Week, FSA/FCA, RDR