Hargreaves says RDR will be 'bad for entire industry'

Mixed Messages

And he the guy who only a few weeks ago said that his firm was the only one ready for RDR?!?!?!?!?!?!?!? Has he smelt the coffee now that he's made his millions!

Posted by: paolo standerwick

MPs Sit Up and Listen

Whilst everyone in this industry has an axe to grind, perhaps as a FTSE company the FSA and MPs may sit up and listen to Peter Hargreaves because what he says is true. The days of a free lunch or cross subsidies are over. If you cannot afford to pay then you will not get free advice. God help the masses as they are the ones that most need financial advice.

Posted by: Bob Donaldson

Not for the Banks Though

I wish the FSA would acknowledge this and do an about turn. Hardly likely though as they are almost all ex or seconded bank people batting for the banks and insurance companies. The banks and insurance companies can't wait for it to happen and are recruiting additional sales people as we speak.

Posted by: John Smyth

Julia Roberts on RDR

"Big mistake. Big. Huge."

Posted by: Ken Durkin

Bad all round!

Not just bad for the industry but the consumer as well. No-one outside our industry cares at the moment, but in 2013 the British public is going to wake up to the fact that there are far less independent advisers to choose from and by the way, most of them won't be able to afford to see those that are left anyway. The FSA will be able to say how proud they are of removing product bias from the market. But will be quieter on how the threw the baby out with the bathwater to achive it!

Posted by: Chris wheeler

RDR

I admire the Hargreaves model, but it is just one of many that can survice RDR. Look at his comments "not good for the retail industry", "the end of cross subsidies". What about the comment that people are moving into shares because of low interest rates-where are the considerations of client risk? All in all, these comments could come from any industry source except the IFA sector. Vantage is product driven just like the banks. Cross subsidy is just not TCF. As a fee based IFA we can still deliver advice to the less affluant clients at a profit. The RDR will be hard on some and some aspects of it are wrong-but really when I see such comments as here, I look forward to its implementation!

Posted by: Ken Hayden

RDR was supposed to be for the consumer

Nice to see the consumer getting a mention; I think the RDR will almost certainly be very bad for the consumers who need the most help and yet most of the comments we hear seem to concentrate on IFA vs bank, etc. I thought the RDR was supposed to be for the consumer's benefit but most people who can afford to pay fees don't really have a problem with their retirement funding, etc, whereas those who most need help with this will not be able to afford the fees. I first started charging fees over 25 years ago but surely there must be a case for allowing commission sales at the lower end of the spectrum (85% of the public?), so that they can at least get viable access to relevant financial tools to use.

Posted by: Glyn Williams

RDR is common sense

RDR is a very positive move for the industry and it will bring more clarity for clients, initially we may well see a drop off for clients being able to access advice who cannot afford i am sure the gap will be filled by a shrewd businessman. RDR will finally start opening the industry up to scrutiny. Only when advisers get paid for providing clients with financial planning benefits and service as opposed to selling a product and hiding costs in product structures will our industry start gaining respect and the salesmen and mis-sold products start to cease. Its really time advisers stopped moaning about the FSA and got a grip of their own businesses and started providing advice not product sales.

Posted by: Not Stupid

Time to accept the challenge...

The RDR is fact, it won't be going away. If its detractors have given up already I just see this as a great opportunity to get in there and win their clients! My clients want someone who will help them, not moan on about the door closing when the horse is long gone. We will make the future for them. I love the fact that advisors, by 2020, will be perceived as professional as accountants and lawyers.Can't wait.

Posted by: Jan FD

Car advisers

When I buy a new car I don't go to a car adviser and pay a fee for advice on a complicated product. Why would I want to pay extra? "Not stupid", I would not pay you a fee for something I could get without a fee. Not a chance.

Posted by: Ken Durkin

Professional !

Keep dreaming Jan FD. The insurance industry has been trying to acheive this for as long as I have been in the business, which is a very long time, and failed. If you want to be an accountant or lawyer go and become one. Incidentally they are not as highly thought of by the public as you seem to think they are. Yes you probably will pick up new clients who are prepared to pay fees but they will not be medium or low net worth clients. They will drift into the arms of the banks and insurance companies and be duped by their unscrupulous highly targeted sales people. It is this section of the public that will be harmed not the high net worth ones.

Posted by: John Smyth

RDR

John Smyth - you reckon Jan FD should "dream on"? Well, when you said the insurance industry has been trying to become a profession and then go on to say "Yes you probably will pick up new clients . . . they will drift into the arms of the banks and insurance companies and be duped by their unscrupulous highly targeted sales people." That is precisely why insurance could never become a profession because it was on commission and it was sold. Financial Planning will be a profession and yes, I also can't wait to see these old style advisers leaving the rest for good.

Posted by: Harry