WMA warns non-monetary benefits derailing RDR

The Wealth Management Association has warned the aims of the RDR could be undermined if advisers continue to be given non-monetary benefits.

In a letter responding to ‘GC13/5 Supervising retail investment advice: inducements and conflicts of interest', the WMA argued reasonable non-monetary benefits (RNMBs) were an unsuitable alternative to commission. Ian Cornwall, director of regulation at the WMA, said: "The WMA is concerned that the practices discovered in the course of the FCA's thematic supervision work have the potential not only to undermine the basic objectives of the RDR but, if not tackled head-on, will eventually lead to this major project being deemed to have failed. "As well as subverting the basic principles...