The Treasury Select Committee ("the Committee") published a report on its inquiry into the Retail Distribution Review ("RDR") on Saturday, and recommends that in order to allow advisers to satisfy the requirements of the RDR, the FSA should defer its implementation for 12 months.
The Committee agrees that reform of the financial advice market is needed, but believes the FSA's current timetable risks putting a large number of experienced advisers out of business, potentially reducing competition and choice for consumers, at a time when the savings rate is too low.
In its response, the FSA has said it remains committed to the January 2013 date, and noted that "many of the report’s recommendations relate to the importance of monitoring the market place to ensure that the RDR’s goals are being achieved. The FSA is committed to ongoing monitoring and recognises that it is important that its proposed successor organisation, the Financial Conduct Authority, continues this work."
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