Comment on Government and FSA responses to the Treasury Select Committee’s report on the RDR

Comment on Government and FSA responses to the Treasury Select Committee’s report on the RDR

Comment on Government and FSA responses to the Treasury Select Committee’s report on the RDR 

Commenting on the Government and FSA responses to the Treasury Select Committee’s report on the RDR, Martin Shaw, Chief Executive of the Association of Financial Mutuals, stated:

“It's good to see that the Government has acknowledged the confusion over how much VAT will be payable as a result of the RDR’s implementation; we hope to see further clarification on this soon and we welcome HMRC’s intention to meet with the industry.

“Considering the overarching objective of the RDR is to increase both the quality of advice delivered and the transparency around paying for it, it is crucial for the industry to understand what the regulator envisages a 'low cost simplified advice' regime will look like for consumers and that they consult properly with the industry in order to achieve the best possible outcome for consumers.

“It is right that the Government has not agreed to the twelve month delay the TSC report recommended. At a time of regulatory change, the industry needs as much certainty as possible and preparations for the RDR’s implementation are well underway. The FSA needs to move ahead quickly now to ensure the regulation is in good shape upon implementation.”