Blog: FSA must monitor IFA 'inactivity' post-RDR

Terry Smith, the City veteran planning to start his own fund group, warns of the “pernicious danger” of adviser inactivity following the RDR.

clock

Terry Smith, the City veteran planning to start his own fund group, warns of the "pernicious danger" of adviser inactivity following the RDR.

A lot has been written about fund management fees recently, particularly with regard to the impact of the Retail Distribution Review. This comes into effect at the end of 2012 and will thereafter prevent advisers (IFAs, wealth managers and private client stockbrokers) from obtaining payment of part of the egregious upfront fees of up to 5% of the sum invested charged by many fund managers and/or 'trail' commission paid from the annual charges levied by managers. From 2012, advisers will need to obtain payment via advisory fees charged direct to the clients, which may prove somewhat ha...

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 Investment

Trump, Modi and US-India trade tensions – who cares?

Trump, Modi and US-India trade tensions – who cares?

A bottom-up approach to finding hidden gems

Gabriel Sacks
clock 02 January 2026 • 4 min read
2026: Year of the racehorse or workhorse?

2026: Year of the racehorse or workhorse?

'Every year brings its challenges, and 2026 will be no exception'

Russell Andrews
clock 02 January 2026 • 4 min read
Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Will continue to be led by current management team

Patrick Brusnahan
clock 23 December 2025 • 2 min read