The RDR 100 days on

As anticipated, most organisations were compliant with the statutory RDR requirements on day one and about 85% of advisors had gained the required qualifications and statements of professional practice.

Clearly some intermediary firms have been selling fee based propositions for many years. But for life companies and intermediaries embarking on RDR transition we estimate that the best prepared were at least 12 months ahead of the pack. We know that a number of players were burning the midnight oil between Christmas and New Year’s Eve and it is clear that many are still in transition to the post RDR world in terms of culture and, indeed, proposition.

We have identified some weaknesses in many of the post RDR service propositions we have seen. In particular some fee structures and rates seem to represent transition rather than the probable end-game; some ongoing service propositions do not appear compelling and there seems to be an absence of fail-safe systems and controls to ensure that the promised on-going service is actually delivered.

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