In the second part of a trio of articles, Karl Dines explores the effect of RDR on advisers' charging structures and what they should be thinking about as the regulator approaches its second review on the suitability of advice...
In the first of this series of three articles we explored the butterfly effect and the early days of the Retail Distribution Review (RDR). The world didn't end with the arrival of the RDR, but it did profoundly change the way in which firms were remunerated. Pre-RDR, the provider would supply products to the firm, and also reward the firm for placing business with them; the commission paid was built into the product in many an interesting and inventive way to the extent that it was difficult for clients to see the cost. Of equal importance was the fact that the relationship for the deliv...
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