Has financial advice changed since the Retail Distribution Review in 2012?

This year the Financial Conduct Authority (FCA) is set to review the RDR 6 years after the sweeping changes to our services were introduced.

Undoubtedly there have been many positives. The uplift in minimum qualifications for Advisers has brought increased professionalism and the link between products and advice has been severed with a move away from commission based charges.

We feel our Independent Financial Planning approach, although perhaps more costly than some other services, brings far better end results for our clients. With more freedom of choice around pension arrangements our advice is more valuable than ever.

The downside, which many IFA’s saw coming, is that an “advice gap” has been created for those who can’t afford the cost of a personalised face to face advice service. The FCA is hoping that technology will play a part in driving down the cost of simplified advice.

FMB does offer a lower cost remote option with a more limited scope, however this is only available for simple investments. It is perfect for those in the saving phase who do not need face to face meetings on a regular basis and are happy to work via our online Personal Financial Portal and the phone. It is not suitable for those needing retirement advice or for investment greater than £100,000.

It has been good to see the improvement to the IFA community as a whole and interestingly a rise in the number of qualified financial advisers during 2017, perhaps signalling increased interest in the profession as a career choice.

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