Majority of IFAs back TSC call for RDR delay

The overwhelming majority of independent financial advisers (IFA) support the Treasury Select Committee’s (TSC) call for a 12-month delay to the implementation of the retail distribution review (RDR).

The MPs urged the Financial Services Authority (FSA) to consider the delay last month, saying it would give IFAs more time to reach QCF Level 4 and could increase the number of firms and advisers making the transition to the new system.

New Model Business Academy (NMBA), the not-for-profit arm of SimplyBiz, surveyed about 500 advisers and found 79% agreed with the proposed delay.

Lee Travis, head of business at NMBA, said the result of the survey was "not a surprise", adding concerns centred around the need to avoid a "deterioration to the level of service" offered to clients while meeting RDR requirements.

"The reaction from the advisers who participated in this survey is not the knee-jerk negativity we saw in the early days of the RDR, but rather a rational and clear plea for more time," he said.

"Most advisers are still willing to embrace the principles of the review, but want more time to ensure they can implement all the necessary changes properly - in these circumstances I do not think it is unreasonable for advisers to request more flexibility and clarity from the regulator."

Although the FSA has said it will in time respond to the TSC's recommendations, it has already ruled out any delay, insisting it is "committed" to implementation in January 2013.