The declared intention of the Conservatives is to scrap the FSA if they win the next election. The effect of this statement has apparently caused some problems with recruitment at the FSA and has raised questions over whether this would spell the end for the RDR proposals – or at least result in a delay. Whatever the merits of the arguments for and against this move, the likely reality is that the proposed ‘Consumer Protection Authority’ (CPA) will have the same underlying objectives and strategy as that of the FSA. In addition, the most qualified people to carry out the job are already likely to work for the FSA – we could debate the probability of who will fill the senior positions, but the majority of personnel are almost certain to simply transfer from one organisation to another (or perhaps multiple others)!
So, what about the implications for RDR? Anyone thinking that this would be abandoned will have to put aside such ‘wishful’ thinking after Mark Hoban MP – shadow financial secretary to the Treasury – has written to clarify the position saying:
“The RDR is a matter for the FSA and as a consumer focussed initiative, it will pass to the Consumer Protection Authority as the body which will take over the regulation of the IFA community.
So the change in the regulatory structure should not affect neither the progress of the RDR nor the timetable.”
The proposals that have been debated throughout the RDR have been fundamental – long-term – objectives of not just this regulator, but previous incarnations too. It therefore goes without saying that the next ‘nameplate’ above the door will almost certainly wish to adopt and implement the current proposals.
Manufacturers and distributors (along with the various supporting suppliers), should assume that they will need to work to the same plan and timescales for RDR, including the move towards a fee based business model and ensuring that they undertake the training & development to achieve the QCA level 4 benchmark qualifications in time. Three years may sound like a long time, but as for the teams of builders and athletes preparing for the Olympics, the deadline of 2012 is ticking remorselessly closer. They and we should adopt the philosophy of not putting off until tomorrow what could and should be done today…
