.jpg)
The Financial Services Authority (FSA) today announced a change to the timetable for publishing feedback on the Retail Distribution Review (RDR) Discussion Paper. An interim paper will be delivered ahead of schedule in April 2008, with full implementation plans in October.
The RDR was set up to address the root causes of persistent problems in the retail investment market and brought together consumer and market representatives who contributed a series of ideas to a Discussion Paper which was published in June 2007.
Originally, the FSA planned to report back on the RDR in June 2008. But in light of the significant feedback received already, an early report will be published to give the market an indication of where the review is heading. Publication of a detailed response, taking account of all regulatory implications, will follow in October providing more time to achieve better outcomes and following further research.
The FSA expects no slowing down of the overall RDR timetable but is keen to make sure any changes achieve the right outcomes and that they make a positive difference to firms and consumers.
In a speech today at the Institute of Economic Affairs, Stephen Bland, FSA Director responsible for the Retail Distribution Review, said:
"We want to give the market as much information as we can, as soon as we can, about what we have heard and what we have found both in the interests of transparency and to keep up the momentum.
"We think we can achieve better outcomes overall by taking more time during the discussion phase of the RDR to develop the detail and consider the regulatory implications of that detail.
"…The overwhelming message we're getting from all in the market is that if we are to make regulatory changes, we must get it right."
The speech also described some of the main areas on which the FSA has received feedback to date, in particular on the need for greater transparency.
Stephen Bland said:
"It is clear that the feedback we are receiving adds up to a widespread view that the eventual RDR proposals will need to have greater transparency to consumers and market practitioners (including therefore a reduction in their complexity) if the RDR is to achieve the outcomes for the market and for consumers for which we are striving."
During the six-month consultation period the FSA has received feedback from thousands through public events and written responses, with more expected over the last few weeks of the discussion period. It is also conducting research on the review paper's proposals.
The interim statement in April will set out the broad areas on which feedback has been received and, where possible, the results of the FSA's own research, so it can outline what this might mean for the way the FSA proceeds.
In October, the Feedback Statement will include the full feedback received during the discussion period along with the FSA's decisions on the future implementation of any regulatory changes coming out of the RDR, and the timetable for formal consultation on those changes.
