The FSB has communicated that the initial RDR Phase 1 implementation plan will be delayed. The reason is that it was initially anticipated that the drafts of subordinate legislation to give effect to the majority of the RDR Phase 1 proposals, would be published for comment in April 2016. However, the legislative timetable has been pushed out, with a knock-on effect on the RDR Phase 1 timelines. The timing of when the implementation process will commence or how long the delay will be is uncertain, as National Treasury has requested the postponement of the consultation on insurance related subordinate legislation until Parliament has been advised on the Insurance Bill, 2016.
Our MD, Ian Middleton, who sits on the Market Conduct Regulatory Framework Steering Committee, has written an article on what the impact of the RDR developments will be on Financial Advisors. Here he discusses the most important aspects which will form part of the Phase 1 implementation plan once it becomes implemented. Click here to read his article
The FSB is currently reviewing the timing and implementation of the full set of measures in order to determine whether all aspects of the Phase 1 proposals will be deferred or whether there are certain measures which can practically be implemented at an earlier stage. Masthead continues to be at the forefront of discussions regarding RDR developments and will keep you updated.