Prudential adds voice to calls for RDR delay
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Prudential has joined Zurich in warning that the current retail distribution review (RDR) deadlines should be delayed due to the continued lack of clarity over the new rules.
Rob Devey
Rob Devey, the UK chief executive of Prudential, points to last week’s decision by the FSA to push back its final rules on platform fees and cash rebates, the launch of a guidance consultation on legacy commission and the Treasury select committee’s call for a one-year delay to the RDR.
He says: “It is still not clear where the regulator will end up on those issues, so there is a lot of uncertainty. You have to look at the markets as well because it is a bloodbath right now.
“Given all that, why would we want to push through a reform that a very serious parliamentary legislative body suggests we should delay? We will be ready by the end of next year but it is a big call to just ignore the select committee’s recommendation. The regulator should probably push the RDR deadline back by a year.”
The Association of British Insurers (ABI) has stopped short of calling for an outright RDR delay.
An ABI spokeswoman says: “Delays in the detail are raising practical challenges so we hope the FSA will work with the industry to get these issues resolved as soon as possible.”
A Standard Life spokesman says: “We would like to see the RDR implemented on time. However, there are areas where we need improved clarity from the FSA and it is important we get that clarity soon.”
Aegon, Axa, Aviva and L&G continue to back the FSA’s December 31, 2012, implementation deadline.
Last week, Zurich warned that sticking to the current deadline risks an unlevel playing field.
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