A status update on RDR
A short summary regarding the status update given by the FSCA
“We want RDR to shape an environment that ensures that fair and affordable advice is available to all and in order to ensure that we have to make sure that advisors are sustainable and that advice is sustainable.” Caroline da Silva (2016)
The Retail Distribution Review (RDR) was published in November 2014 and it proposed several changes in relation to the distribution of products and the provision of advice. The FSCA continues to implement the RDR proposals in a phased manner by using the existing financial sector laws to implement certain proposals. In the future, it will also use the Conduct of Financial Institution Act ( COFI Act) to implement the remainder of the proposals. The Status update published by the FSCA summarizes the status of each of the 55 proposals.
The RDR Developments that can be expected during the rest of the year:
Publication of the discussion paper on the following aspects:
Investment management and Investment Advisors and related proposals;
Remuneration Dispensation for the low-income market;
Testing the following:
The impact of the new life risk commission model;
Consumer understanding of the RDR brochure;
Ongoing work and research on:
Intermediary activities; and
Current tied adviser remuneration practices in the long-term insurance sector.
And lastly, finalizing changes to the FAIS General Code of Conduct. To familiarize yourself with the status of the RDR proposals and the implementation thereof please read the RDR status update.