RDR SOLUTIONS FOR RETAIL BANKING

Introduction

The FSA launched its Retail Distribution Review (RDR) in June 2006 with the aim of giving consumers greater confidence and trust in the retail investment market.  Central to the FSA’s plans is raising the professional standards of investment advisers, to give consumers greater confidence in the standard of advice being offered. 

Raising professional standards for advisers includes:

• Increasing the minimum qualification level for new advisers, from QCA Level 3 (or equivalent) to QCA Level 4;
• Requiring existing advisers, meaning those deemed competent at 30th June 2009, to gain a QCA Level 4 qualification by December 31st 2012;
• Ensuring advisers maintain their professional competence by completing annual Continuing Professional Development (CPD); and
• Establishing a Professional Standards Board to oversee qualifications, CPD and an industry-wide Code of Ethics.

The RDR applies to the whole advice sector, but as the UK’s only remaining professional banking institute, we realise that the RDR poses particular challenges for the retail banking sector.  We have developed a series of tailored solutions designed to help the sector make a successful transition to the new standards.

 The Association of Independent Financial Advisers (AIFA)

We have also been working with AIFA on a new Diploma in Investment Planning to help its members meet the new RDR requirements by December 2012.  Anyone interested in this qualification can register their interest at www.aifa.net/qualifications