Secondary

Tag Archives | RDR

fees

To fee, or not to fee?

The right to charge additional fees, and particularly “admin” fees, has long been a bone of contention, particularly in the short-term industry where it is particularly prevalent. The latest draft General Code of Conduct (GCoC), which closed for industry input yesterday, contains three new paragraphs which aims to provide clarity on this thorny issue. 3A. […]

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moonstone-RDR-Update

FSB RDR Update November 2017

At the end of last year’s Insurance update from the FSB, Jonathan Dixon said: “We had better fasten our safety belts – this is going to be rough year”, or words to that effect. Having read all eleven presentations for this year’s road show this weekend, it might be advisable to strap on a parachute […]

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warning

New steps to curb Churning

The Retail Distribution Review (RDR) of 2014 contained several comments that expressed concern about the negative effects of “churning” which it described as “inappropriate or unnecessary replacement of policies driven by intermediary incentives”. For example, Proposal NN contains the observation that “Analysis of the current distribution landscape has pointed to concerns about up-front commission on […]

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inspection-feedback

RDR feedback from the UK

On Tuesday, David Ferguson, founder and chief executive of Nucleus Financial Group in the UK, speaking at the Sanlam i3 Summit, said RDR and all the associated legislation introduced in the UK in 2012 have really been about driving value for money. RiskSA reports on this as follows: “The winners have been those who cared […]

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loud-hailer

Call for Caution on Regulatory Interventions

On 27th of March we published an extract from the ASISA Dispatches to give readers a perspective on the multitude of legislative changes currently underway in the financial services environment. On Tuesday, the Financial Intermediaries Association of Southern Africa (FIA) issued a media release to express its concern over the unintended consequences of this raft of […]

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Outlook-2016

RDR in Perspective

I was fortunate to attend a recent presentation on this topic by Billy Seyffert, COO of Moonstone Compliance. Many see the Retail Distribution Review as the beginning of the end. In a way, this is correct, but only in so far as it applies to the world as we know it. Why RDR? Two concepts, […]

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Regulatory-instruments

Gap Filling for Tied Agents

In case you thought this may be a rather painful dissertation on what a dentist does, think again. In the Retail Distribution Review, the Regulator aims to provide for situations where tied agents, or Product Supplier Agents (PSAs) are unable to comply with clients’ needs as their employer does not offer the product the client […]

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Supervisee

Adviser and Advice Differentiation

The December 2016 Retail Distribution Review update provides clarity on matters which appeared slightly confusing in earlier proposals. The Regulator did away with the “multi-tied” category of adviser – in future, you are either tied or independent, although the formal title is yet to be determined. The proposals to distinguish between various types of advice, […]

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moonstone-costly-fica-transgression

Remuneration for Investment Product Advice

This is possibly the biggest bone of contention for advisers in the investment space. In the FSB’s RDR Update published in December 2016, the following information was conveyed: Commission on investment products As indicated in our December 2015 General Status Update, the intention is to implement the prohibition on investment product commission in two steps, namely by […]

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