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 tha...

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

Professional Adviser TV: Remaining client centric in a time of increased regulation and digital demands

Professional Adviser TV: Remaining client centric in a time of increased regulation and digital demands

Kevin Bailey and James Sullivan also unpack what value looks like

Professional Adviser
clock 04 July 2025 • 1 min read
Targeted support: FCA shuns 'overly prescriptive' approach to vulnerability

Targeted support: FCA shuns 'overly prescriptive' approach to vulnerability

Considered prescribing how firms should support ‘vulnerable consumers’

Isabel Baxter
clock 30 June 2025 • 2 min read
Targeted support: 38,000 current advice users expected to switch

Targeted support: 38,000 current advice users expected to switch

Firms could generate up to £499 in revenue per customer

Isabel Baxter
clock 30 June 2025 • 4 min read