RDR

The discretionary fund management arena has become over populated of late and this trend is likely to continue in the run up to the Retail Distribution Review.

Firms must ensure retail clients can cancel an ongoing service provided by their adviser without also having to withdraw their investments, the FSA says.

The FSA seems to believe there are many myths circulating about the Retail Distribution Review (RDR). This quarter the regulator busts the bogus info on passporting, discretionary investment management and restricted advice.

The FSA has told consumers the RDR will not increase the amount they pay for advice.

Advisers think the FSA's independent and restricted labels are "wrong" but the majority will remain whole of market after 2013, recent findings suggest.

Aviva has said 85% of its new business value is unaffected by changes brought on by the RDR.

Firms offering non-advisory roles to IFAs who fail to meet RDR requirements are being warned by the FSA to make sure they do not stray into delivering advice.

The government will look to exempt small financial services firms from further regulation for three years when it writes new powers for the FSA's successor.

Standard Life has dumped its face-to-face advice service for private clients, who will now be dealt with via telephone and online.

Small firms expect they will be hit harder by the ongoing cost of implementing the FSA's data collection rules compared to their larger counterparts and banks.