Karl Dines: Subtle shifts from RDR with large pricing consequences

In the first of this series of three articles we explored the butterfly effect and the early days of the Retail Distribution Review (RDR). The world didn't end with the arrival of the RDR, but it did profoundly change the way in which firms were remunerated. Pre-RDR, the provider would supply products to the firm, and also reward the firm for placing business with them; the commission paid was built into the product in many an interesting and inventive way to the extent that it was difficult for clients to see the cost. Of equal importance was the fact that the relationship for the deliv...