Adviser Alliance will lobby the Office of Fair Trading (OFT) to take up the anti-RDR cause on competition grounds.
Founder Alan Lakey (pictured) says the RDR will result in a "massive reduction" in competition within financial services and argues the OFT therefore has a statutory duty to make formal representation to the Competition Commission (CC).
According to Lakey, the ban on commission and expected drop in adviser numbers post-RDR will dramatically reduce competition.
Furthermore, he says RDR-driven changes are powering a growing tide of consolidation in the insurance sector which will punish consumers by limiting choice.
Lakey says profit margins on investment, pension and life insurance products in the UK are among the lowest in Europe and companies are burdened by too much regulation.
"Is it any wonder that insurance giants are looking to leave the UK," he says. "We are talking about a massive reduction in competition driven by RDR changes."
"We might be left with three or four consumers - this is not competition, this is a cartel."
Lakey, partner at Highclere, says he will lobby the OFT to present the anti-RDR case to the CC. He also reveals the OFT has already asked him to make representations explaining how the RDR will be detrimental to competition.
"If they are fulfilling their statutory function they are obliged to refer the matter to the CC," he says. "They have been vigorous in moaning about bank charges but are missing a trick because the RDR will seriously reduce competition. This is a big issue they need to address."
But the retrospective nature of the OFT's actions could present a stumbling block.
"The OFT tells me because the RDR will not be in place until 2013, they cannot do anything in advance, but they will be able to after 2013 - when it is too late."
According to Lakey, the OFT have held several meeting with the FSA over the past two-and-a-half years in which the RDR was discussed.
Based on ONS data
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