New professional standards to be introduced for Financial Advisors
Set to be introduced on the 1st January 2013, the Financial Services Authority will introduced a Retail Distribution Review (RDR) – a new set of professional standards for the Financial Advice profession.
The RDR will bring about a number of wholesale changes which will help to ensure that consumers receive the best and most accurate advice that they can from any financial advisors. There are three key areas of change that we will be focusing on and these include:
Qualifications will now become an important part of any financial advise and this advise must be presented by a competent person who has been qualified by examination to QCA level 4 in Financial Services. For the last four years, we have been Chartered Financial Planners reaching a QCA level 6 in a variety of areas including Pensions, Taxation and Trusts.
Working on a fee only basis
From the 1st of January 2013 commission will no longer be allowed for financial advice. As a company we have long worked on a fee basis, but in the annuities market it is often advantageous for the cost to be paid for from the annuity, given the small incremental gains made from a higher annuity purchase amount failing to offset a significant initial fee for some years. As a business we will continue to give clients the choice of paying from the product of directly when the new rules are brought in.
The introduction of the RDR means that we will see a change to the term "independent"
Throughout the services that we have provided, Philip Bates & Co Financial Services (http://www.theannuityspecialist.com/