APFA: RDR fallout might see regulator revisit FSCS threshold

Nicola Brittain
clock •

The Financial Standards Authority (FSA) may be forced to reconsider the Financial Services Compensation Scheme (FSCS) threshold when the impact of the Retail Distribution Review (RDR) on adviser revenues becomes more apparent, APFA has said.

The Association of Professional Financial Advisers (APFA) policy director Chris Hannant said that the proposed FSCS investment intermediary threshold of £150,000, announced in July last year, was based upon certain affordability assumptions that may yet prove wrong as the impact of the RDR becomes more apparent. He added: "If the evidence demonstrates that the RDR has had a significant impact on profit margin, then the FSA's assumptions on affordability will be flawed. If this is the case, we will continue to pressure the body to reduce the figure. "We won't know what impact the RDR h...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FOS partially upholds complaint against SJP for failing to provide annual reviews

FOS partially upholds complaint against SJP for failing to provide annual reviews

SJP failed to provide five annual reviews for client

Sophia Panayi
clock 23 September 2026 • 3 min read
FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

Regulator's Kate Tuckley gives update

Isabel Baxter
clock 08 September 2026 • 3 min read
DB transfer adviser hit with provisional FCA ban and £742,700 fine

DB transfer adviser hit with provisional FCA ban and £742,700 fine

Daniel Thomas advised 53 clients, including four British Steel scheme members

Sophia Panayi
clock 03 September 2026 • 2 min read