What is RDR?
The Retail Distribution Review (RDR) is a key part of the FSA’s consumer protection strategy and becomes fully effective from 31 December 2012. The key goals of RDR are to ensure that:
- Consumers are offered a transparent and fair charging system for the advice they receive.
- Consumers are clear about the service they receive.
- Consumers receive advice from highly respected professionals.
To achieve these goals the FSA has published new rules and requirements for advisers, as follows:
- Adviser firms must explicitly disclose and separately charge clients for their services.
- Adviser firms must clearly describe their services as either independent or restricted.
- Individual advisers must adhere to consistent professional standards, including a code of ethics.