Press Release
For immediate release: Thursday 25 June 2009
IMA WELCOMES APPROACH OF RDR BUT QUESTIONS SOME PRACTICALITIES
Responding to the FSA's consultation paper, ‘Distribution of retail investments: Delivering the RDR', Julie Patterson, Director of Authorised funds & Tax at the Investment Management Association (IMA), said:
"We welcome the overall aims and philosophy of the proposals, but there are a number of practical points where we believe changes are needed.
First, while we welcome the wider scope of products now included in the proposals, such as structured products, we are disappointed structured deposits are not to be included.
Second, the labelling of the types of advice available remains a concern. While the proposals are a step in the right direction, and the ‘Independent' and ‘Restricted' advice labels seem workable, further work and discussion is needed in relation to other labels. We question whether the ‘Simple Advice Process' and ‘Basic Advice' are needed, and having both can only result in confusion. It is crucial that this is resolved before implementation.
Third, while the FSA's intentions on adviser charging, and many of its observations, are sensible, the recommendations for fund mangers are not proportionate. They will account for a significant proportion of the £140m annual cost identified in the FSA's cost benefit analysis. Yet that analysis identifies no mis-selling in relation to funds. We shall consider the implications in more detail and continue to debate them with the FSA."
-ENDS-
About Investment Management Association (IMA)
IMA is the trade body for the UK's £3.4 trillion asset management industry. The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Its role is to represent the industry and promote high standards.
For further information, please contact:
Noreen Shah, Press Officer, IMA, 0207 831 0898
Mona Patel, Head of Communications, IMA, 07834 089332