Focus on change Money Marketing
All the proposed changes in the retail investment market have an originating objective but the focus too often drifts to the need for change rather than delivery of improvements.
The industry must be given an opportunity to develop - encouraged by regulatory incentive as well as censure - to enable better consumer outcomes. It is becoming increasingly difficult to see how consumers are not going to be negatively affected during the process of significant change.
Much of the debate has centred on the RDR but there is a great deal more which could have an even greater impact. The potential effects of the RDR are only partially understood.
Although a drive to increase professionalism is logical, the approach is likely to see a further percentage of people lose access to advice. Regulatory incentive could address this objective in a more productive way.
Additional capital requirements for personal investment firms will be phased in from 2011 and changes to the mortgage market will affect around 60 per cent of IFAs.
