Retail Distribution Review – Guernsey Consultation
The Commerce & Employment Department are inviting comments from all interested parties about the United Kingdom’s Financial Services Authority’s (FSA) Retail Distribution Review (RDR). A consultation has been opened to ensure that the principles and proposals within RDR and how they may affect Guernsey are fully considered before any decision is made about whether Guernsey should adopt a similar regime.
The Guernsey Financial Services Commission has advised the Commerce & Employment Department of its recommendation regarding the implementation of RDR. In the light of that advice the Department has decided to conduct a general consultation on RDR before taking a final policy decision.
Comments are being invited through the consultation from interested parties including stakeholders, financial services businesses, customers, consumers and other users of Guernsey’s financial services industry.
Commerce and Employment Minister Kevin Stewart said: “The consultation is in response to the FSA’s RDR proposals, we always aim to work closely with stakeholders and industry to ensure Guernsey adopts the most appropriate stance in this and related matters to protect and enhance its financial services industry.”
RDR is a new regulatory environment for the distribution of financial services products to retail customers and it includes 3 key elements:
• It stops financial services providers paying commissions to financial advisors and instead will require consumers to pay financial advisers directly;
• It increases the minimum educational standard for those in industry carrying out this work;
• It improves the transparency in the way in which firms describe their services to consumers.
After receiving comments, the responses will be collected and a summary made public. All comments will be considered to inform a policy decision based on RDR or similar. If it is concluded that policy changes are required then Commerce and Employment will work with the GFSC on how any policy changes may be implemented.
A consultation document which explains the background to RDR in more detail asking various questions is available to download at : www.gov.gg or can be collected from Raymond Falla House or posted please call 234567. The consultation will last until 2nd January 2013.
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