FSA publishes finalised guidance on the RDR rules for independent and restricted advice
07 June 2012
The regulator has issued its finalised guidance on the Retail Distribution Review rules for independent and restricted advice, following on from the guidance consultation issued in February.
Since the RDR independent and restricted advice rules were published, the FSA has received a number of questions from firms. This guidance addresses the common points raised, with the aim of helping firms to implement the new requirements. The paper is structured as follows:
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Section 2 outlines the key components of the standard for independent advice;
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Section 3 covers the requirements for firms providing restricted advice;
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Section 4 discusses the requirements for how firms hold themselves out;
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Section 5 discusses a number of advice tools and investment strategies, and how their use may influence the ability of firms to meet the independent advice rules; and
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Section 6 is on professional standards and how differences between the qualifications and skills of advisers may affect the ability of advice to meet the independent advice rules.
The FSA confirmed that a company can take a team-based approach in order to meet the criteria for ‘independent advice’, rather than each adviser having to meet the definition. The regulator also underlined its stance on MiFID II, saying it believed its rules will be compatible with the European Directive, even though some respondents expressed concerns about differing definitions of 'independent'.
Press release
Finalised guidance
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