FCA plans to replace RDR 'independence' standard

RDR definition 'too difficult' to achieve, respondents to consultation said

Tom Ellis
clock • 3 min read

The Financial Conduct Authority (FCA) is proposing to replace the current definition of independent advice, which is in place as a result of the Retail Distribution Review (RDR).

In a consultation document published today, the regulator said it was proposing to replace the RDR standard with the Market in Financial Instruments Directive II (MiFID II) interpretation. The new standard will apply to all Retail Investment Products (RIPs), just as the current RDR-inspired definition does, and will include non-MiFID RIPs such as insurance-based investments and personal pensions. In its third MiFID II consultation paper, the regulator has proposed firms would no longer have to assess every single product on the market under the new rules. It said, however, a firm that pr...

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

Court sets trial date in illegal financial promotions case

Court sets trial date in illegal financial promotions case

Lucy Beck pleads not guilty

Sophia Panayi
clock 31 July 2026 • 1 min read
FCA flags weak customer outcome focus in firms' monitoring frameworks

FCA flags weak customer outcome focus in firms' monitoring frameworks

Consumer Duty review found inconsistent governance and oversight

Sophia Panayi
clock 27 July 2026 • 2 min read
Open finance could pose 'existential threat' to advice market

Open finance could pose 'existential threat' to advice market

Consumer Duty Alliance tech forum attendees hear

Sophia Panayi
clock 23 July 2026 • 3 min read