RDR ‘could deal Blow to Savings’
Tory MP, Howard Flight, has spoken out against the Retail Distribution Review which is planned to come into effect at the start of 2013. It is his view that it could have a damaging effect on savers within the UK, reducing the availability of financial advice.
He also added that this would have a detrimental effect on the economy, by obstructing savings needed to pull the nation out of recession.
In a letter to the Financial Times, Mr Flight, who is also chairman of the Flight and Partners recovery Fund, said that the Financial Services Authority (FSA) and the Treasury were ‘hell bent’ on implementing the RDR, despite the negative effects he feels it will have on UK savings.
Flight said that the changes will no doubt affect those that are less well off, and that anyone who earns a salary under £100,000 would likely be unwilling to pay the fees.
He added: “The rich will be affected little; they have the resources to pay for advice. But financial advisors will not be interested in those who have savings in the order of £100,000 or less, who I doubt will be willing to pay fees out of after tax income”.
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