Firstly, I promise this is my last post on RDR this week.
Whilst this is undeniably a very important subject to both our industry and, more importantly, you the corporate clients, I do feel that this issue is already taking over the blog. There are lots of other important items from the world of employee benefits (not just pensions) to cover in the coming weeks, it’s just with a recent surge in legislation, pensions is the hot topic of the moment!
So, to return to RDR. In simple terms, it is a very broad set of proposals, and much of the implications are more focused on individual financial advice business (as opposed to corporate business). The implications for corporate business is largely around the ‘banning’ of commission models post 2012, which for some organisations may have the result of moving the costs of advice and administration for group pension arrangements onto employers. This at a time when most employers are just struggling to keep their head above water. There seems no logic to the timescales, which have been forced through by the Financial Services Authority without a proper Commons Debate. Well, that has all changed now, and for those interested you can follow a blow by blow account of the debate this week here http://www.ifaonline.co.uk/ifaonline/news/1928827/rdr-debate-live-blog
It has to be said, it does look like the FSA are digging their heels in, and no movement is likely. On Jelf’s behalf, I did send the findings from our recent survey of employers on this point to the debate, but I see no mention of these findings being considered. For more information on our recent findings, please follow this link http://www.jelfgroup.com/blog/2010/11/recent-employer-survey-representation-and-rdr/
In the meantime, employers should assume the worst, and make plans for how they are going to deal with this cost implication.
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