The Retail Distribution Review in the UK is becoming more and more of a theme here in Singapore. The review essentially changes the way in which Financial Advisers can work in the UK. All advisers will now be required to hold a Diploma in Financial Planning.
Currently advisers in the UK are required to sit and pass the Certified Financial Planner examinations and further to hold specific qualifications in order to give specialist advice.
The new Diploma is estimated to take up to 600 hours of studying.
The common summary of the effects of RDR are the abolition of commission and the introduction of fees for advice. This essentially means that you will pay for your financial adviser just as you would for your accountant or lawyer.
What the effects of this will be on the investor on the street remains to be seen, it is new ground for investors as well as advisers.
In Singapore, there have as yet been no such moves but firms, such as Meyado, have started to introduce the option of paying an adviser fee and not paying a commission.
RDR comes into play at the end of 2012 in the UK and I am sure that there will be many further developments over the coming 24 months or so.
***by way of personal disclosure I hold FPC and CFP module examinations from the UK as well as M5, M8 and M9 in Singapore and am commencing study of the Diploma in Financial Planning ***
About Me
- Mark Paine
- I joined Meyado Private Wealth Management as an international financial adviser in 1993. I have lived and worked in the USA, Europe, the Middle East and currently reside in Singapore in South East Asia where I am Managing Director of Meyado Pte. I am a qualified Financial Representative in Singapore under the MAS Financial Advisers Act as well as holding UK FSA CFP and FPC examinations and a BSc in Business and Law from the University of Hertfordshire in the UK. You can contact me at markpaine@meyado.com
