In its first RDR review today the FCA, which conducted research during February and April, the FCA said "the majority of firms have made progress and there is a willingness to adapt to the new rules".
This is the first of three reviews which will be conducted by the FCA this year.
But the FCA was concerned about three issues:
- Providing charges in percentages rather than cash terms, which some consumers found confusing.
- Firms describing themselves as independent but in fact choosing products from a limited number of providers.
- Not clearly explaining what service customers will receive for ongoing fees.
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Clive Adamson, director of supervision at the FCA, said: "RDR was a major policy development, so it's right that we are acting on behalf of customers to see whether the significant changes are working for them.
"The research for this report was undertaken just a few months after the implementation of RDR, so provides an early snapshot of what has changed. This early view shows that, while firms have acted, they still have more to do to if a customer is going to be in the best possible position to understand the price they will pay and the service they will get for that price.
"Firms should carefully consider the feedback covered in this report. We strongly encourage advisers to look at the examples highlighted, and take immediate steps to help their customers better understand the charges and services being offered."
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