The maze of post-RDR propositions

REGULATION

Advisory firms are far down the route of deciding on their propositions when the RDR comes into force in January 2013.

For many, the challenges of running a vast investment machine, including individual fund recommendations and asset allocation modelling for each client, was too much and they opted for what seemed like a simpler solution. This could include portfolio advice services, discretionary investment management or distributor-influenced funds. However, according to the FSA’s recent paper on investment propositions, the regulator fears firms are a long way from a smooth transition to what they hoped would be a simpler option. Words like ‘shoe-horning’, ‘churning’ and ‘additional costs’ continue to...