Sants: RDR will not lead to third of IFAs exiting the profession - Citywire
The problem with 'systemic control' is that you need to be able to spot 'trends' and to move quickly to guide the participants in these areas very early on and not wait until all you have to deal with is the aftermath. A prime example is the wholesale funding of lending which overheated and was there for all to see yet nothing was done for reasons unknown. There are many other trends which have been developing and are apparently still not on the regulatory radar, well I can't see any evidence to show that they are under scrutiny.
As far as the method of remuneration which is agreed by the adults who are party to the advice process is concerned I don't see how things will dramatically change, there are many ways to skin a cat as the saying goes. Yes there have been problems with firms who focus on generating commission but these can be 'trends' as mentioned above, in many cases that I spotted the problem was provider influence and the greed of the firms that have since folded and their liabilities have ended up on the backbreaking burden of the FSCS, those providers are unlikely to return to their old ways for a number of reasons, extinction being one of them. I predict another trend, or two, caused by the RDR which will lead to consumer detriment, I may be wrong but I am not the only one who can see this, my Scottish friend is the 'oracle' of financial services, he predicted all this mess back in 1985, yes he spotted all the 'trends' back then, his favourite cartoon is Snoopy lying on top of his kennel saying 'nobody listens', it is my favourite too, spooky! I believe nobody listens because it isn't what they want to hear.
We can only hope that the next regulatory environment is more effective than what we have experienced over the last two and a half decades.
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