In December 2015, the FSB released a document called the ‘General Status Update: Retail Distribution Review’. This document provides a general status update on the FSB’s strategy of implementing the RDR proposals and clarifies the steps and processes that will be followed during the implementation process. It is only for information purposes and should be read together with the Phase 1 document, titled ‘Status Update: RDR Phase 1’ which was published in November 2015.
The document looks at each of the six RDR themes and splits the implementation for each theme into 3 phases. The six RDR themes are;
- Adviser categorisation
- Long-term insurance risk
- Short-term insurance
- Sales execution and other intermediary services
- Low income market
The implementation and order of implementation is dependent on when the Financial Sector Regulation (FSR) Act and the Conduct of Financial Institution (CoFI) Acts come into effect and delays in these Acts, could cause RDR implementation timelines to shift. However, in high risk cases that result in poor customer outcomes, the FSB or the future Financial Sector Conduct Authority (FSCA) will if necessary, review the order of implementation and place priority on such matters, irrespective of the Acts being promulgated.
The FSB welcomes any comments or questions for clarification. Such communication may be submitted to FSB.RDRfeedback@fsb.co.za or by post to the FSB. Given that this is an information document, no deadline has been set for comments.
Masthead will submit comments to the FSB as deemed necessary and appropriate and will keep you updated on any feedback received.