The managing director of Sense Network has said that he has "grave concerns" regarding the readiness of product providers for the Retail Distribution Review (RDR).
Tim Newman, managing director of the Cheshire-based business, said he is concerned a number of providers have yet to release details on their RDR-readiness less than three months before the new regulations come into force.
"We are still waiting for information on the process of transitioning from trail to adviser charging, and the products that will be available for new business post RDR.
"I have grave concerns about their readiness. The question is not whether there will be a car crash, but how big the car crash is going to be," he said.
"As a company, we are well prepared for RDR, but of course the devil will be in the detail. There will be challenges for us but any difficulties will be made worse by product providers that are not ready."
Newman explained that Sense, which will remain independent post-RDR, would be protected against some of the negative impact of the regulations because 60% of its income now comes from recurring business.
He also said that he hopes this will increase to 75% of all revenue by this time next year.
"This move to recurring from transactional income has been an ongoing process," he said.
"We encourage firms to move from a transactional model by helping them provide a menu of services and encouraging them to talk to their clients about it. The process is not rocket science and has been ongoing for four years or so."
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