Retail Distribution Review

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Retail Distribution Review
  • Purpose of the RDR
  • Professionalism
  • Adviser charging
  • Independent advice

Retail Distribution Review

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

This Practice Note looks at the Retail Distribution Review (RDR). The RDR is a regulatory initiative that was set up in June 2006 aimed to target the quality and standard of advice available to consumers of financial services. The review is an important part of the FCA’s consumer protection objective. It aims to improve clarity for people who want to invest, raise professional standards and reduce possible conflicts in relation to remuneration. For detailed guidance on the RDR and the regulator, see Retail Distribution Review and the regulator.

Purpose of the RDR

The regulatory changes proposed by the RDR focus on several key aspects of the distribution of both retail investment products and corporate pensions, including status of advice, standards of professionalism, adviser charging, and platforms. In order to achieve its objective to make consumers more confident about getting advice and trusting what firms tell them, the RDR introduces new rules to

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