Regulatory Alerts2019-12-13
Retail Distribution Review Discussion Document on Investment Related Matters December 2019
The Financial Services Board and FSCA propose regulatory reforms to the Retail Distribution Review framework that redefine "investment management" and clarify adviser categorization to mitigate conflicts of interest in outsourced investment services. The updated measures establish stricter fit-and-proper standards, introduce a distinct license category for model portfolio providers, and mandate fee structures that directly align with the actual discretionary services delivered to end investors. These changes aim to eliminate cost duplication, resolve legal versus operational discrepancies in third-party co-branding and wrap fund models, and ensure remuneration accurately reflects the quality and scope of investment advice.
Share