View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 4, 2014updated 04 Apr 2017 2:32pm

Non-monetary benefits could subvert the basic principles of RDR, says WMA

Continuation of non-monetary benefits to advisers could subvert the basic principles of the retail distribution review (RDR), according to the Wealth Management Association (WMA).

By Verdict Staff

Continuation of non-monetary benefits to advisers could subvert the basic principles of the retail distribution review (RDR), according to the Wealth Management Association (WMA).

In its response letter to ‘GC13/5 Supervising retail investment advice: inducements and conflicts of interest’, the association said that provision of reasonable non-monetary benefits (RNMBs) is an unsuitable alternative to commission, reported investmentweek.co.uk.

WMA regulation director Ian Cornwall was quoted by investmentweek.co.uk as saying, "The WMA is concerned that the practices discovered in the course of the FCA’s thematic supervision work have the potential not only to undermine the basic objectives of the RDR but, if not tackled head-on, will eventually lead to this major project being deemed to have failed."

In its September paper, the Financial Conduct Authority (FCA) emphasized joint venture deals between providers and advisory services to set up a new investment proposition.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International