Gosling's Grouse: What is an 'honest mistake' post-RDR?



I had to smile when I heard from a product provider last week that some advisers are struggling with a few basic elements of RDR.

One advisory firm apparently submitted client applications with the ‘adviser charging’ section crossed out and replaced with the words ‘3% commission’. A member of the admin team picked up the ‘mistake’ and assumed it was an error, until they realised a whole bundle of applications had been altered. Of course, it did not take a compliance officer to point out the applications could not go through and they were dispatched back to the adviser firm. I have yet to hear the outcome of the conversations between provider and adviser, but what are the conversations with the individual clients...

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