It seems that regulatory changes to increase professionalism and transparency of financial advice is what people need if they are to have confidence in seeking professional help with their finances. In the latest YouGov poll conducted as part of Financial Planning Week, which is running from 21st – 27th November 2011, 69% of those polled agreed that these changes would boost confidence levels.

The changes being implemented by the Financial Services Authority from January 2013 as part of the Retail Distribution Review are a response to perceived problems within the retail financial services sector. The aim of the RDR has been to increase the level of professionalism within the industry, including changes to the way advisors can be remunerated as well as introducing a step change in advisor’s minimum qualifications.

We see this as a good thing and welcome the changes being introduced by the FSA. We identified a fundamental flaw in the traditional IFA business model many years ago. As a result we made significant and difficult changes to our modus operandi that have placed us in the enviable position we’re in today.  This means we are well placed to meet the new standards being laid down by the FSA as part of the Retail Distribution Review (RDR).

We eliminated our reliance on commission paid by product providers and became a fee only practice in 2005. This means our clients have complete transparency regarding the cost of their investments and advice.

The introduction of higher professional qualifications within the industry is also a key part of the RDR. No one enjoys sitting exams (except perhaps our own Huw Jones) but it is a way of demonstrating an appropriate level of professional capability. Again we are well on the way to reaching the targets and beyond well before the end of 2012.

Regulatory change is not easy to undertake but the results of this poll help make the work seem worthwhile, if it helps raise confidence levels in the financial services inductry.