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...

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