Worldwide get ready for Retail Distribution Review

A Hampshire firm of independent financial advisers is implementing a series of processes as it gears up for industry changes.

Chandlers Ford based Worldwide Financial Planning is putting steps in place to ensure the company is ready for the introduction of the Retail Distribution Review (RDR).

RDR, which is being launched by the Financial Services Authority (FSA), comes into effect on New Year's Eve 2012.

Worldwide IFA, Peter Cunio, said: "RDR forms a key part of the FSA's consumer protection strategy.

"It aims to identify risks earlier, allowing them to intervene and help protect customers and stop some of the issues that have had a massive impact on people over the last three years.

"As well as IFAs, like us, this will apply to all advisers in the retail investment market including banks, financial product providers, wealth managers and stock brokers."

Under RDR the FSA wants to achieve a resilient, effective and attractive retail investment market that consumers can have confidence in and trust at a time when they need help and advice with their retirement and investment planning.

RDR states that consumers are offered a transparent and fair charging system for the advice they receive; that consumers are clear about the service they receive; and that consumers receive advice from highly respected professionals.

In order to achieve the FSA is publishing new rules that will require: advisory firms to explicitly disclose and separately charge clients for their services; advisory firms to clearly describe their services as either independent or restricted; and individual advisers to adhere to consistent professional standards, including a code of ethics.

"As a company we've been moving towards these targets for a number of years, particularly with regards charging," said Peter.

"We're already working with our clients to move away from a commission-based system while all our advisers are also undertaking further examinations to add to their qualifications.

"The new system will hopefully have a positive impact, not only for customers, but for advisors and it will ensure best practice."

For more information please visit www.wwfp.net or call 023 8027 0370.