28 Jul IFP Chief Claims Delaying RDR For Another Year Would Send Wrong Message

Nick Cann, the chief executive of the IFP, has claimed that a delay to the implementation of the retail distribution review by another year will send out the wrong message to consumers and indicate that their is a lack of confidence in the method when the opposite is needed. The Institute of Financial Planning has stated that the calls from the Treasury select committee to delay the implementation of the RDR would not be in the consumer's best interests. They claim that the advice to advisers was to reach level 4 qualification by the end of 2012, and they have had three years to do so. Extending the RDR implementation deadline would suggest that these advisers are not able to gain the extra qualilfication. Cann claimed "Most IFP members are already qualified to at least level 4, and are now carrying out gap fill initiatives to ensure compliance with the new standards. In a recent survey carried out by IFP with its members on gap filling, 11 per cent of respondents reported either having no gaps to fill or have already filled them. A further 71 per cent has already started gap-fill activities with just 18 per cent yet to make a start." He commented that the RDR process has now been underway since 2006, providing plenty of time for IFAs to gain the qualifications they need. He adds "The IFP believes the aim of bringing about greater professionalism and clarity for consumers is too important to delay for a further year and sends the wrong message." He added that there are still some areas that could do with being looked at, but a full scale delay would be counter-productive.