MPs warn consumers could be hurt by tough rules on advisers

 
Tim Wallace
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NEW REGULATIONS designed to help consumers access financial advice could actually be harmful as they are being rushed through too quickly, an influential committee of MPs warns today.

The retail distribution review rules stop advisers taking commission and instead force them to charge separately for their advice.

The Financial Services Authority is also pushing for advisers to be examined or assessed if they want to keep on working with retail investors when the new rules come in on 31 December.

But Treasury Select Committee chairman Andrew Tyrie fears the deadline is too tight, and so not all advisers may be assessed by the deadline, harming both the industry and their customers.

As a result, he called for the deadline to be moved back a year.

However, the FSA’s Martin Wheatley noted that 93 per cent of advisers are thought to be on track to complete the assessment on time.