What does the shake-up of financial advice mean for ordinary investors?by Jay Elwes / November 26, 2012 / Leave a comment
As of January 2013, the way in which people in Britain are sold financial products and are given financial advice will change fundamentally. This may at first seem a trivial matter. However, the banks who are presently setting aside billions in order to pay off claims by consumers who were mis-sold payment protection insurance would disagree.
In increasingly uncertain times, with interest rates low, financial advice relates to the questions facing an ageing society. People are paying more for healthcare and education; they move between jobs more often and have to provide for their pensions. The question of how they will plan and pay for the future requires attention.
The Retail Distribution Review of consumer financial services has been rumbling on for six years. Its findings will be implemented by a descendant of the soon to be dismantled Financial Services Authority, called the Financial Conduct Authority. The designated CEO of this new body is Martin Wheatley, who on Friday addressed a joint Private Investor-Prospect conference on the RDR, hosted by London Stock Exchange.