The Retail Distribution Review (RDR) is being introduced by the Financial Services Authority (FSA) and will take effect at the end of 2012.
Having been worked on for the past 5 years this far reaching initiative represents important changes to the FSA’s consumer protection rules.
According to the FSA benefits to expats as well as UK based investors will include:
Clearer charges: instead of being paid by commission, advisers will have to agree charges with you up front.
Clearer services: it will be made clear to you how much of the market your adviser can help with, be it all possible investment options available or specific areas.
More professional advice: your adviser will have to meet higher standards of qualification, keep knowledge up to date and sign up to an ethical code requiring them to treat fairly.
While the new rules only apply to UK Independent Financial Advisers there could be ramifications worldwide as authorities in other jurisdictions look to copy the UK Financial Services Authority.