Barclays is encouraging the FSA to excuse high net-worth clients from the RDR because they are more “financially sophisticated” than retail consumers.
Barclays are urging the FSA to excuse high net-worth clients from the Retail Distribution Review because they are more “financially sophisticated” than retail consumers.
Barclays have claimed that the RDR does not take proper consideration of the “unique needs” of HNW customers. The bank states that it is not convinced that the FSA’s claim that the investment advice model is broken is actually applicable to customers within the HNW product category.
The bank says: “We have not seen convincing evidence of the FSA’s claim despite extending these rules to cover private wealth management. The high-net-worth market is highly competitive and involves internationally mobile clients who are often more financially sophisticated than retail clients.”
In January, the FSA fined Barclays £7.7m for failures relating to the sale of Aviva funds, and last month Barclays closed its advice market for retail consumers. The bank will still continue to offer advice for HNW clients through Barclays Wealth.