WMA warns non-monetary benefits derailing RDR

Laura Dew
clock

The Wealth Management Association has warned the aims of the RDR could be undermined if advisers continue to be given non-monetary benefits.

In a letter responding to ‘GC13/5 Supervising retail investment advice: inducements and conflicts of interest', the WMA argued reasonable non-monetary benefits (RNMBs) were an unsuitable alternative to commission. Ian Cornwall, director of regulation at the WMA, said: "The WMA is concerned that the practices discovered in the course of the FCA's thematic supervision work have the potential not only to undermine the basic objectives of the RDR but, if not tackled head-on, will eventually lead to this major project being deemed to have failed. "As well as subverting the basic principles...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

St James's Place results lay bare cost and charging challenges against market tumult

St James's Place results lay bare cost and charging challenges against market tumult

'Structural opportunity' for advice industry

Hope Coumbe
clock 28 February 2024 • 3 min read
SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
M&G launches full PruFund range on Wealth platform

M&G launches full PruFund range on Wealth platform

‘Greater flexibility and wider choice’

Valeria Martinez
clock 22 May 2023 • 1 min read
Trustpilot