Retail Distribution Review: a ramshackle revolution

On 1 January 2013 the main Retail Distribution Review amendments come into force – the most momentous change in the way the financial services industry markets its savings and investment products to the public since certain parts of the Financial Services Act 1986 came into force in 1988. Adam Samuel traces the tortuous path behind and spots some pot-holes ahead.

Adam Samuel BA LLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may be contacted at AdamSamuel@aol.com. His book, ‘Complaints and Compensation: a Guide to the Financial Services Market’, is available from his website, www.adamsamuel.com.

Before April 1988, there was a broadly unprincipled anarchy. Firms used employees, tied agents, multi-tied or general agents and independent financial advisers who often mistakenly described themselves as brokers to distribute. Legally, all but the last group were agents of the provider. All were remunerated by commission determined by the provider.