Consumer Panel welcomes progress on FSA Retail Distribution Review

29 April

The Consumer Panel has today welcomed the FSA's Interim Report for the RDR in this key area of how investment advice can best be delivered to consumers.  We are pleased that the FSA has picked up on many of the suggestions from the Panel, including using a simpler model; only allowing independent advice from professional advisers; and sales being clearly split from advice. The Panel is calling on the industry to continue with its constructive response to the challenges the FSA poses.  It is important that outcomes highlighted, such as treating customers fairly and achieving a sustainable business model that is fair to customers, are achieved.

Adam Phillips, Acting Chairman of the Financial Services Consumer Panel said:

"The RDR has made strides in the right direction of achieving a better system for consumers.  We have continually stressed the need for people to be able to get independent advice which is not influenced by how much commission advisers earn.  This is reflected in the FSA's early thinking, but now the challenge will be to find a way to make it work in practice.  We are keen to see the industry embrace these ideas and deliver positive change for consumers.”

 

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

4. There are currently eleven members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Adam Phillips (Acting Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner
   Jenny Hamilton

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart