RDR: Retail Distribution Review

Changes to the way you get financial advice

Changes are being introduced to improve the way you receive advice on investment products, such as ISAs and pensions. Here we explain what it means for you.

What is Changing?

From 31st December 2012, you will get:

  • Clearer charges: instead of being paid by commission, advisers will have to agree charges with you upfront.
  • Clearer services: it will be made clear to you how much of the market your adviser can help with, be it all possible investment options available or specific areas.
  • More professional advice: your adviser will have to meet higher standards of qualification, keep knowledge up to date and sign up to an ethical code requiring them to treat you fairly.

What is the benefit to me?

  • Increased confidence and trust in the advice you receive as you will know it has been recommended to suit your needs.
  • From the outset, you will know exactly what you are paying for. Costs will no longer be included within the charges of products that you buy..
  • You will get a higher level of technical expertise due to the new professional standards advisers must meet.

What do I have to do?

Nothing. Financial advisers have to make these changes by the end of 2012. Your adviser is likely to have already started preparing for this by changing the way they work. They should be able to tell you what their plans are ahead of time, and some may introduce the changes sooner.

How much will the advice cost me?

Advice has never been free. These changes do not affect how much the advice should cost, but allow you to agree, in advance, with your adviser how much you pay for their services. And rather than paying a fee upfront, you may be able to agree with the adviser to have their fee taken from your investments.

Direct from FSA

 Dated 2012 – valid for 6 months. AisaProfessional is a trading style of Aisa Direct Ltd, authorised and regulated by the FSA as Independent Financial Advisers. 4 Fordbrook Business Centre, Pewsey, SN9 5NU

Notes …

Please note that the opinions expressed in this information must not be construed as statements of fact – you should carry out your own further research before coming to a decision and before taking any action.
The views in this letter represent the opinions of Aisa and should not be construed as a statement of fact. Further advice should be sought before actioning any investment or tax advice. The Financial Services Authority does not regulate opinions on the economic outlook, nor does it regulate some forms of tax advice or comment such as this.

* This newsletter has been prepared with all possible care to ensure its accuracy. It is based on our current understanding of legislation and HMRC practice. 
* Neither Aisa Direct Ltd nor any of its employees can accept responsibility for any errors or omissions. You should seek further professional advice prior to action.

This should not be deemed as individual advice and you should seek further information particular to your individual circumstances. For further information, contact AisaProfessional on 01672 569111.