Just a third of employers are aware of the implications of the Retail Distribution Review (RDR) and the planned regulatory changes in response to that, according to research by financial education provider Close Asset Management.
Although these changes could impact on their benefits packages and benefits providers, 69% of employers said they are unaware of the changes that will be made as a result of RDR.†
This will include the removal of commission from investment products and outlaw commission payments from pension providers to intermediaries when it comes into effect on 31 December 2012.
Of those respondents who are aware of the RDR, 34% did not think it would directly apply to financial advisers. Around half (51%) said they thought only providers of financial products, including insurers, pension companies and banks, would be directly affected.
Jeanette Makings, director of financial education services at Close Asset Management, said: “Although this legislation is centred around the financial services sector and consumers, it will have implications for employers.
“Employers will need to seek assurance regarding their benefits advisers, and any IFA [independent financial adviser] they allow in front of their employees. Knowing the processes many employers need to go through to select new providers, and the timeframe for the impact of this legislation, employers need to start looking at their providers very soon.”
“The way in which financial advice is delivered is set to dramatically change as a result of RDR so it is vital employers are aware of the implications on their business and their staff.”
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