Retail Distribution Review (“RDR”)
Following the announcement by the UK Financial Services Authority (“FSA”) relating to its RDR, the Commission has been closely watching developments in this area and assessing the potential impact of this UK FSA initiative on its licenceholders and the Isle of Man’s financial services industry generally.
At this stage the Commission can confirm that it will be looking to reflect the increase in professional standards although no specific timeframe for implementation has been agreed. The question of whether, and if so how, the Commission will permit ‘grandfathering’ is also still under review.
Further work needs to be undertaken in respect of RDR and the Commission is looking to establish a working party with the relevant professional bodies in this regard. Additionally, any new rules that result from this work will be the subject of wider consultation.
One area, however, that the Commission will be looking to address, with effect from 1 January 2012, is that of mandatory commission disclosure. It is planned that a requirement will be included in the next draft Rule Book and this will be the subject of consultation during the Summer of 2011.
Dave Smart, Secretary for The Financial Planners & Insurance Brokers Association commented:
"The Financial Planners & Insurance Brokers Association welcome the announcement by the Commission on the Retail Distribution Review. We will continue to work closely with the Commission and our members in shaping the way forward for our industry".
Sean Flanagan – Senior Manager, Financial Supervision Commission
Tel: (0) 1624 689329