The UK’s biggest multi-tie mortgage and financial advice network, Openwork, has revealed that it has spent £15million in preparation for the oncoming RDR.
Chief executive of Openwork, the UK’s largest multi-tie mortgage and financial advice network, Mary-Anne McIntyre, has recently revealed that the firm has spent £15million in order to prepare for the oncoming retail distribution review. In spite of this, they are still calling for a year’s delay in order to guarantee that as many advisers as possible continue in the industry.
According to McIntyre, Openwork have been preparing for the RDR in an effort to make sure its members make the switch by 2013: “Over the last two years, we have spent £15m making sure our protection, mortgages and investment businesses and all our systems are integrated. The money we have spent on helping advisers transition their businesses is also rolled into that figure.”
However, in order to aid the changeover, McIntyre believes that the FSA should postpone the deadline for qualifications by12 months in order to facilitate advisers gaining their QCF level four. She explained that; “It is only 16 months until the RDR live date and I would like to see another year given to advisers to reach the required qualifications.”
Additionally, McIntyre stated that there are still tied advisers who feel that they should not be required to carry out their QCF level four qualifications. – “We have seen this issue come up at our panel meetings, where some advisers think because they are not whole of market they do not need to adhere to the requirements of the RDR”. She claimed that Openwork is looking to step-up their communications regarding this over the next 16 months.
As a result of RDR, Openwork expects to lose 15 per cent of its adviser population by January 2013, However it is thought that some of those advisers will be relocated to other divisions of the business such as protection. These issues, and others, continue to cause controversy over the oncoming RDR changes.