Blog: FSA's Holloway move proves RDR failure

After 12 months of intense lobbying by mutuals, the FSA has finally relented and is proposing to exempt most Holloway products (HP) from RDR adviser charging and professionalism rules. For advisers who don't sell these products, which are mainly bought by poorer, blue collar workers, the significance may be muted. But the u-turn highlights two big problems with the RDR; the bluntness of a one-size-fits-all rule change, and who it overlooks. About 70% of HPs, those with a "small" investment element, would be exempt under the FSA's proposals. This is a huge amount. The change of h...