New research has shown adviser knowledge of the RDR is poor, with just 6% having read the review's discussion paper and only a third reading a summary.
The latest Chartered Insurance Institute’s (CII) survey of 800 advisers showed the majority of advisers had overlooked the discussion paper.
This is despite advisers being encouraged to submit their own views on the proposals before the consultation period ends on 31 December 2007.
The CII says larger advisory firms are finding it easier to accommodate the RDR, while many smaller firms are struggling.
Premier Wealth Management managing director Adrian Shandley says many advisers don't see the point of reading the paper and responding as they belive the FSA will disregard their opinions.
“In all honesty, I have only read a little of the summary,” he says. “There is a degree of resignation to it all; when the FSA decides they are going to do something, they will do it.
“Most of the times when the FSA changes something they don’t care if they get it wrong and don’t care about the consequences.
“They can sit back six months later and admit they got it wrong, but it is us on the ground who are directly affected.
“Since the FSA was introduced in 2000, the vast majority of the legislation has not been beneficial to the industry.”
Personal Finance Society chief executive Tim Eadon says the 6% figure shows advisers need guidance on the issue.
"These results show that there is still a need to further educate and help those who need to prepare for the impact of the RDR. A special RDR website and the roadshows developed by the PFS are helping members to think and plan what they needed to do as the RDR process develops," he says.
AIFA director general Chris Cummings says the trade body has produced papers to help advisers understand the RDR's various proposals.
“The RDR will have a huge impact on advisers and it is vital they make their voice heard,” he says.
“AIFA has been extremely busy working on the Retail Distribution Review and trying to raise awareness within the adviser community.
“The question in front of every IFA firm is simple: will you merely sit back and adapt once change is imposed – or will you make a stand and help deliver a better result for you and your clients? We hope they take the second option and we will do all in our power to help them.”
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