No going back on RDR
There’s no doubt, that for most IFAs, 2012 will be their most challenging year to date with the Retail Distribution Review (RDR) set for 2013.
Not only must they pass exams to obtain a Level 4 qualification, they also need to complete ‘gap-filling’ activity to update their continuing professional development records, and then apply to obtain a Statement of Professional Standing (SPS).
All financial advisers will have to work with an accredited professional body to obtain a Statement of Professional Standing ahead of the 31st December 2012 deadline. Already it is predicted that up to 40% of IFAs might be unable or unwilling to do so.
Here at Brett Investment we are well advanced and hope to have our SPS within the next month. Being a Certified Financial Planner (a Level 6 qualification) has certainly helped but even so the Gap-Fill requirements have been surprisingly demanding.
We should not underestimate this challenge. For many financial advisers, these new professionalism standards are far in excess of anything previously required.
All investors should therefore ask their financial adviser for a progress report so they have the confidence that their IFA or tied adviser will be able to continue looking after their interests from the end of this year.