Background to the RDR and the Professionalism Working Group

What is the Retail Distribution Review (RDR)?

The Financial Services Authority (FSA) launched its retail review in June 2006. The review targets the quality and standard of advice available to consumers in the financial services sector.

In summary, the FSA wants a retail market where:

• information for consumers is clear, simple and understandable
• firms are soundly managed, adequately capitalised and treat their customers fairly
• regulation is risk-based and principles-based; and consumers are capable and confident.

In the FSA’s view, there are features of the retail investment market and the way products are designed and distributed that make these aims difficult to achieve. So late in 2006, the FSA convened a number of industry Working Groups to investigate the issues and propose solutions. This work culminated in DP07/1 – A Review of Retail Distribution, published in June 2007. The Chartered Institute for Securities & Investment was one of nearly 900 stakeholders that responded to the paper by the end of December 2007.

The FSA's latest consultation paper - CP10/14 Delivering the RDR published in June 2010 includes an appropriate exam list which includes transitional and RDR ready qualifications. Previous consultation papers and CISI’s responses can be found at the end of this page.

The CISI held a series of 16 RDR roadshows throughout the country during February and March 2010. A total of 428 attendees participated in a nationwide survey and a report on these findings can be found here.

How is the CISI involved?

As a professional body that promotes professionalism in the industry, the CISI is directly involved in the challenges that emerged from the interim feedback, notably 'to develop and agree a common framework for professional standards'. The CISI’s response to this challenge has been to work alongside three other leading professional bodies to set up the Edinburgh Declaration - a common perspective on the measures needed to improve professionalism in financial advice.

View CISI press release and joint statement on the Edinburgh Declaration.

Since the release of the Interim Feedback statement, the FSA has set up a “Professionalism Standards Advisory Group”. Click on the link below to view the full list.

Although the RDR focuses much of its attention on general financial advice, it embraces investment management – hence the involvement of the CISI and the Association of Private Client Investment Managers and Stockbrokers (APCIMS) in the discussions. Both the CISI and APCIMS want to ensure that no decision is taken which will adversely affect firms in the industry sector which both bodies support. The CISI is an active member of this Working Group and has been responsible for drafting the policy papers on ethics and CPD in line with current CISI practice.

Please click here to read the terms of reference of the Professionalism Working Group.

Previous Consultation Papers and the CISI’s responses:

Interim Feedback Statement - April 2008 
FSA Feedback Statement - November 2008
CISI Response - November 2008
FSA Consultation Paper - June 2009
CISI's Response - October 2009 
Appendix to CISI's Response - October 2009 
FSA Consultation Paper CP09/31 - December 2009
CISI's Response to CP09/31 - March 2010
CISI's RDR Roadshow Survey Results 2010
FSA Consultation Paper CP10/14 - June 2010


If you have any queries concerning the RDR as an individual or for your firm, please email us at RDR@cisi.org.

Updates will be uploaded onto the website as soon as they are available.