FCA concedes RDR has led clients to question value of advice

The banning of commission on retail investments and the subsequent revelation of the "true cost" of advice has led some clients to consider the value of what their adviser offers, the Financial Conduct Authority (FCA) has conceded.

Though the regulator said there was "little evidence" that the availability of advice had reduced significantly following the changes brought in following the Retail Distribution Review (RDR), it admitted it had prompted some advised customers to conclude they are not receiving value for money. "By revealing the true cost of advice, the RDR has led some consumers to consider the extent to which the advice they receive represents value for money, and in some cases conclude it does not," the regulator said in a report on the impact of RDR. The FCA has published two pieces of work examin...