RDR: Shaking up investment management?
Significant differences of opinion exist among the investment management community about how radical an impact the RDR will have on them. While not having as profound an effect as on advisers and insurers, the reality is that the RDR will shake up the investment market more than many investment managers are expecting. In particular, the FSA’s focus on reducing the cost of retail investment product supply poses a real risk that much of that reduction will be suffered by investment managers.
This paper explores some of the direct and indirect impacts investment managers will face as a result of the RDR, as well as identifying those groups who are either best placed to take advantage of, or likely to be most challenged by, the changing landscape. We conclude with a summary of the operational changes required by all investment managers as a result of the RDR.