With an interim paper on requirements due in April ahead of the full implementation plans in October, advisers and providers have been encouraged to embed a clear audit trail or standardised commission structure.
The Financial Services Authority’s (FSA) RDR was introduced to enforce more sophisticated systems for managing commissions paid to brokers and advisers.
With alleged recurrent problems in the distribution of retail investment products, particularly with the mis-selling of pensions and endowments and a lack of transparency concerning commission payments, the regulator has acted to increase professionalism.
Callidus Software argued that the fastest and quickest way to meet these new legislative compliance requirements was to look at embracing technological solutions.
Bill Schuh, vice president for Europe at Callidus Software, said: “In order to maximise effectiveness of their sales channels, financial services providers need to be thinking now about improving visibility and auditing of their commission processes capabilities through software that will allow them to comply and compete better in a rapidly changing sales environment.”
The British Bankers’ Association chief executive, Angela Knight, said: “More clearly segmented and regulated advice services, underpinned by higher professional standards, would give those consumers seeking financial advice greater clarity and confidence on the services available. We and our members will continue to play our part in working towards effective solutions.”
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