Sants: RDR not panacea but worth exit of a third of IFAs

The RDR is not a 'panacea' for the investment market's problem but it is worth a third of IFAs leaving the industry, FSA chief executive Hector Sants has told ministers.

He made the statement during a Treasury Select Committee (TSC) hearing this morning in response to a question from Mark Garnier, one of the MPs who has called a Parliamentary debate on the rule change. Sants told MPs: "The RDR is not a pancea to the investment market, but it is set to deliver specific improvements for investors. "We have deemed the percentage of IFAs exiting, which varies from 11% to the figure you quote of 30%, as acceptable, which is why we have continued with the RDR." FSA chairman Adair Turner, who was also giving evidence, said the changes were necessary due t...