What is the retail distribution review?

The Retail Distribution Review (RDR) is a Financial Conduct Authority (FCA) initiative that aims to provide greater clarity about different types of financial services available. It also seeks to improve transparency around the costs and fees associated with financial advice.

When was RDR in the UK?

December 31 2012
The Financial Services Authority (FSA, now the Financial Conduct Authority [FCA]) created the Retail Distribution Review (RDR) as a set of rules and regulations designed to fundamentally change the way in which financial advice operated in the UK. The RDR was put into place on December 31 2012.

When did retail distribution review come out?

2006
The Retail Distribution Review (“RDR”) was launched in 2006 and the resulting legislation was implemented on 31st December 2012. This has changed how retail investment products are sold.

What does RDR mean in finance?

The requirements described in the Retail Distribution Review (RDR) apply to retail investment advisers. The designated investment business includes advising and/or advising and dealing in securities, derivatives and packaged products. A retail client is defined by the FCA (in COBS 3.4.

When did Retail Distribution Review start in UK?

On 31 December 2012, the UK Financial Conduct Authority (“FCA”) changed the rules about how Financial Advisers describe their services and the way UK consumers pay for them. These changes are commonly referred to as the ‘Retail Distribution Review’.

How is the retail industry changing in the UK?

Look beyond the dramatic headlines and it is clear to see an industry in transformation, with new channels driving growth as the old channels decline and retail is re-invented. 2019 is shaping up to be another tough year for the beleaguered UK retail sector.

How is RDR being implemented in the UK?

Also the way RDR is being implemented is not straight forward. For example commission payments won’t disappear from existence. The RDR does not impact on all financial products, life insurance for example is not included. Also existing business and investments will remain unaffected until you review them.

What are the logistics costs of a retailer?

These are the costs associated with getting product into the retailer’s distribution network from suppliers. Typically, this is about 2 to 7% of sales. Then we have the retailer’s own internal logistics operations, operating warehouses and delivery to the retail stores. Typically, this is in the range of 3 to 5% of sales.