29 Sep Delaying RDR MAy Benefit FSAs According to Openwork

A report created by IFA network Openwork has claimed that a delay in the introduction of the retail distribution review could potentially lead to 10% more advisers remaining in the industry rather than quitting it due to being unable to work under the regulations. They claim the delay, recommended by some MPs, will provide advisers with more time to train so that they fully understand the RDR, but have estimated that the current timeline could see up to a quarter of practitioners leaving their jobs. A 12 month delay could cut this number significantly, with Mary-Anne McIntyre, CEO at Openwork, commenting "While we fully agree with the general principle that advisers should be suitably qualified to deliver advice, we also support the TSC's proposal to remove the hard cliff edge, although we appreciate the difficulties inherent in delivering a smoothed approach." Openwork managing director of distribution, Mark Duckworth, added that they delay could see increased financial benefits for businesses as well. He continued "We believe the costs of implementing RDR will add around 15% to 20% to the cost base of distribution companies and adviser firms in dealing with new processes and procedures in addition to attaining the required diploma level qualification and the loss of client facing time. "Spreading this load over two years rather than one will be a fantastic help at a very difficult time for advisers."