retail distribution reviewThe 1st January 2013 sees the dawning of a fresh new age in UK financial services.  The slate will be wiped clean with the introduction of the Retail Distribution Review (RDR) and the world will be a better place.

RDR Theory

No longer will we see unscrupulous, under qualified, commission hungry financial advisers standing on every street corner waiting to sell us products we don’t need where the term “high yield” relates to their remuneration rather than our investment returns.  New low cost investments will now be the norm and when you want advice you will gladly pay a fee to obtain it, safe in the knowledge that you have got the best deal untainted by any external influence.

Well this seems to be what the FSA and a large section of the press has convinced a whole nation to be the case. The reality however could end up being a lot starker once the full implications of RDR are realised.

RDR Reality

A survey carried out by JP Morgan Asset Management in the summer found that whilst 81% of households would still seek financial advice post RDR, only 13% were willing to pay for ongoing services from a financial a