Speaking at the Home of Choice Second Anniversary dinner, Gerry O Brien, managing director of Home of Choice, warned that the current proposals were too wide and could fuel problems.
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He said: “Is the RDR too wide? It strikes me so, yes. Access and engagement worries me, it is greater than it has ever been and yet there are more problems than ever. My concerns about the report are that the four main people involved in the discussion process, included a retailer, an actuary and head of compliance. It needed distribution heavyweights.”
O’Brien stressed that increasing levels of debt meant the industry had to work together to ensure the RDR was a success.
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He added: “At the moment we have a polarised world, illustrated by debt and wealth. For the broker, the RDR allows an increase in sales volumes and greater scope in advice, but it will be a year before it becomes legislation so we have a year to get it right. This industry doesn’t get too many chances to get it right, and with issues around student debt, non-conforming mortgages and insolvencies, there are not many chances left. But they can be solved by getting the RDR right.”
Dev Malle, sales director for Personal Touch Services, said: “There are important potential changes. The RDR will have a considerable impact on brokers and distribution. It is important to brokers, clients and distributors and I’m not convinced how much input these parties have had.”
