Retail Distribution Review implementation efforts lagging in retail investment market
18 April 2011
Company readiness for the FSA’s Retail Distribution Review (RDR) is falling behind, according to Deloitte, the business advisory firm.
Approximately a third (27%) of the 63 company delegates surveyed at Deloitte’s recent event in London on RDR readiness, said that they were still developing their strategic response, while 13% were focusing on engaging senior management on RDR. Only 11% said they were executing plans to implement RDR, the majority of who were life insurers.
The RDR is central to the FSA’s customer protection agenda, and seeks to address the lack of consumer confidence in the retail investments market. The regulation is due to come into force on 1 January 2013.
The figures indicate uneasiness across participants in the retail investment market, with only 27% confident and 6% very confident that RDR compliance would be achieved. Nearly half (49%) stated they were still waiting to decide, and 17% were concerned at the prospects.
Andrew Power, RDR Lead Partner at Deloitte, commented: “It is interesting to note the lack of confidence for RDR compliance, given that time is ticking for implementation deadlines. There is still a lot to do for many companies, particularly those still developing their strategic response or trying to engage senior management.
“Much indecision remains around preparations as many organisations are waiting on clarity from the FSA, particularly for the final position on Platforms. However, with time to implement short, this should not be a reason to delay the preparation of robust plans in other areas.”
Deloitte’s survey respondents comprised 51% investment managers, 27% life and pension providers, while the remaining 22% included IFAs, bank distributors and wealth managers.
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.
Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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