RDR: FSA listened to ABI and EC not IFAs on 'sales advice'

In its feedback to the RDR, the Association of British Insurers (ABI) urged the FSA not to restrict 'advice' to solely whole of market post RDR. The European Commission also put pressure on the FSA, with the regulator conceding in today's Feedback Statement that under EC guidelines, restricting the word 'advice' to the tied sales channel would conflict with the broad concept of 'investment advice' under MiFID. "In the light of the Commission's initial views, and our wider concerns on the market impact, we believe it is necessary to modify the IR (Interim Review) landscape, retaining a d...