The advisers guide is published on the FSA’s website and is titled ‘RDR – Is your firm on track?’
The FSA guide recommends that advisers have enough time to pass the relevant qualifications, and if needed, include time for re-sits, in order to complete their gap fill, and the firms are asked to consider the implications in case their advisers do not meet the qualification requirement.
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Advisers are encouraged to consider the various accredited bodies that they can chose from to meet the RDR professionalism standards or completing any gap fill.
According to the guide, from 31 December 2012, a firm must use the term ‘independent advice’ or ‘restricted advice’ when disclosing the extent of its advice service, and it reminds firms that just because a firm is ‘independent’, it does not amount to meeting the new RDR definition of independent.
As regards to fees and business models, FSA recommends firms to build a charging model that would support advice service, and also remain fair to clients. In addition to this, firms are asked to consider the systems necessary to collect charges, be able to explain new charges to clients and what the charges are paying for.
Should the advisers need help in developing their fee-based model, the regulator recommended them to seek help from local business groups or accountants and solicitors.
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By GlobalDataFSA says that the guide will help firms in implementing the requirements of RDR in their firm.
