Chartwell & the Retail Distribution Review

Introduced in January 2013, the Retail Distribution Review (RDR) seeks to address the lack of consumer confidence and trust in the retail investment market.

Introduced in January 2013, the Retail Distribution Review (RDR) seeks to address the lack of consumer confidence and trust in the retail investment market and ensure consumers;

Key changes include

Status & Type of Financial Advice

Independent advice

Defined as “a personal recommendation to a retail client in relation
to a retail investment product where the personal recommendation provided is based on a
comprehensive and fair analysis of the relevant market and is unbiased and unrestricted.”

Restricted advice

Includes all forms of advice which don’t meet the ‘independence test’,
but must meet the same suitability, adviser charging and professional standards as independent advice.

Chartwell will continue to offer full Independent advice as many of our clients require
a wide breadth of advice and access to financial products and services, both currently
available and those that will evolve in the future.

Paying for advice

Product providers will no longer be able to pay initial or trail commission on new products. This will be replaced by Adviser Charging. All financial advisers will now have to outline and agree fees for their advice in advance in clear disclosure documents that help customers understand the services being provided along with the cost and value of advice.

Chartwell are already a fee based financial adviser and already meets the requirements. Clients will see no significant change. For over 5 years we have offered two methods of paying for our service – a direct fee payable by the client, or deduction of the cost of advice from the investment or pension product.

How might RDR affect you?

We feel that many of the legislation changes being introduced from January 2013 are already being offered by your Chartwell financial adviser. In fact, we are confident that we have exceeded these standards for several years, as we strive to deliver consistent high levels of advice and client service. If you wish to meet, we would be happy to discuss and agree these changes, how we are paid and what services we will provide.