Debate on the Retail Distribution Review has been too focused on emotive areas such as independence, while ignoring other proposals in the consultation paper, according to Aegon's head of corporate affairs, Francis McGee.
McGee says firms should not be preoccupied by criticising individual proposals but should look at the whole picture and the industry should focus on what it wants to achieve from the review.
Commenting, McGee says: "The RDR discussion paper represents one possible route to one possible destination. But it’s up to all of us to work out how we want our industry to look in five to ten years and decide how best to get there.”
McGee says many proposals in the paper are not being discussed because certain ideas, such as changes to the meaning of independence or debates over whether fees are better than commission, have taken precedence. He also says the industry has been slow to put forward suggestions on issues that have not been covered in the discussion paper.
McGee says he would like to see more discussion on how customer agreed remuneration (CAR) would work in practice and whether Primary Advice can open up the advice market. He also urges advisers to use their unique experience to put forward alternative suggestions and solutions to the issues in the discussion paper.
“Where we agree with the FSA’s analysis, or one of its proposals, it’s worth telling the FSA so. Where we disagree we should explain our analysis and suggest an alternative proposal”, he explains.
“That way we can deliver a workable industry-led solution rather than a variant of a regulator-led one.”
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