According to Gina Miller, who also heads the True and Fair Campaign, Retail Distribution Review (RDR) has the potential to be the next financial scandal despite the Financial Services Authority’s (FSA) latest attempts to educate consumers about the reforms.
Miller expects a large-scale exodus of away from financial advice, with consumers expected to be left disenfranchised.
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Commenting on the matter, she said, "Millions of people risk being further alienated by the financial services sector at a time when more should be done to engage with potential savers and investors."
"Many middle-income investors will no longer have access to financial advice because many advisers are now closing or putting up minimum charges/amounts invested as they target the more lucrative high-net worth investors who will be prepared to pay for advice," she added.
She also attributed RDR’s failure to the fact that it will not provide consumers with all the costs and fees behind their investments.
"While consumers will know how much financial advice will cost, RDR does nothing to demonstrate the value that an IFA can bring in helping consumers choose the most appropriate product for their needs," Miller said.
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