At the recent Discovery Financial Planning Summit, the FSB gave feedback on some of the responses it received to the discussion document on the Retail Distribution Review. It also provided possible timelines for implementation. Below is a brief summary, extracted from the presentation:
The final RDR proposals, informed by the consultation process, will be phased in as the Twin Peaks legislative architecture evolves –
- Phase 1 (Priority proposals): Changes will be made within the current regulatory framework – between close of comment and promulgation of Financial Sector Regulation Act (between now and end 2015).
- Phase 2: Changes post effective date of Financial Sector Regulation Act – estimated during the course of 2016.
- Phase 3: Changes post effective date of future overarching “Conduct of Financial Institutions Act” – estimated in course of 2017.
Between now and the end of 2015, the FSB aims to:
- Analyse comments received – approximately 70 sets of comment are being collated
- Carry out additional technical work and consultation on selected proposals
- Finalise, consult on, and implement the identified priority proposals. This is likely to be staggered during the course of the year
- Finalise and communicate a roadmap for the remaining proposals, aligned to Financial Sector Regulation Bill.
An internal FSB RDR implementation project team is being established, with 6 work streams:
- Adviser categorisation
- Long-term risk
- Short-term insurance
- Sales execution & other intermediary services
- Low-income market
Each work stream will sequence its work as per the implementation phases while industry consultation is to be structured along similar lines, with co-ordination through a representative Steering Committee.
This presentation provides clarity on a number of other important matters, including what advisers and product providers can expect.
Please click here to download a copy.