Alliance Trust CEO says RDR unlikely to boost investment trusts
The Chief Executive of Alliance Trust has warned that the retail distribution review (RDR) is likely to do little to boost demand for investment trusts.
The Chief Executive of Alliance Trust has warned that the retail distribution review (RDR) is likely to do little to boost demand for investment trusts.
The RDR, a product of the Financial Services Authority (FSA), the UK's financial services industry regulator, is changing the way in which UK financial advisors offer services to investors by boosting transparency and clarity. The changes are due to take place at the end of this year.
Katherine Garret-Cox, who was speaking at an Association of Investment Companies (AIC) roundtable, said: "In reality this is not going to be a panacea for the industry, in my humble opinion."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The CEO said she believes that the RDA will not level the playing field between closed and open-ended funds, despite the FSA confirming its plan to put a ban on cash rebates - the payments made by providers to consumers through platform cash accounts.
However Garret-Cox also said that Alliance Trust, as the largest generalist investment trust, with a market cap of £2.0bn, was "well positioned" for the RDR and would be afforded the opportunity to gain traction under its rules.
The RDR aims to protect consumers of financial advice to ensure investors are receiving the correct advice for their individual situation.
Under the new measures, which the investment trust industry must have put in place by the end of December 2012, firms will have to adhere to a code of ethics, state whether they are independent or restricted and disclose and seperately charge clients for the services they receive.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
How high earners could boost their pension by thousands and cut childcare costs
Salary sacrifice could boost your pension by thousands, while also helping you save on childcare costs. We delve into the numbers.
-
Monzo launches 11 ETFs via Blackrock to help savers invest
Monzo customers can now invest BlackRock's iShares ETF range via its banking app, making investing more accessible to millions