UK's Financial Services Authority's (FSA's) Retail Distribution Review (RDR) program to bolster gold

[pmbug]

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The Financial Services Authority (FSA) primary role is to make retail markets for financial products and services work more effectively, and so help retail consumers to get a fair deal.

In June 2006, the FSA created its Retail Distribution Review (RDR) programme which they are enacting in order to enhance consumer confidence in the retail investment market. The RDR has a target for full-implementation of 31 December 2012.

The RDR is expected to have a significant impact on the way in which financial services are delivered to retail investors in the UK. The primary delivery mechanism of financial services to retail customers is via approximately 30,000 Independent Financial Advisers (IFAs) who are authorised and regulated by the FSA. They are expected to bear the brunt of the force of the RDR.

Gold bullion is set to benefit from the axing of commission for IFAs and the implementation of the RDR “should be regarded as a game changer” for gold as an investment in the UK, according to the World Gold Council.

In its latest report ‘Gold as a strategic asset for UK investors’, the World Gold Council rightly points out that the current commission structure in the UK narrowed the range of products recommended “which has been suboptimal for clients’ risk preferences and diversification prospects”.

The World Gold Council backs the new regulation, arguing that it will lead to a broader range of assets including gold being recommended by advisers.
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More: http://www.zerohedge.com/news/game-changer-gold-uk-new-regulation-favours-gold

 

[rblong2us]

what financial advisor would ever recommend gold as a purchase ?

and if they were honest enough to do this they will loose any commision in future ......

how did they ever get commission, was it as an hourly, or lump sum, fee for advice ?

Seriously WTF ?

Am i missing something here ?

 

[DSAbug]

what financial advisor would ever recommend gold as a purchase ?

I've got my Series 65 and i put clients into gold all the way back in 2004. It gives you credibility when the asset you recommend gets a 300%+ return. Most people don't go 100% all in on their investments and you can get the rest of their business because of your good call.

If you are a broker, all you care about is the sale. If you are an advisor, all you should care about is making your clients money.

 

[rblong2us]

Respect Derek.

Wish i had discovered someone like you back in '05, as i effectively cashed up many years of cunning plans and was just relieved to be in cash rather than expensive property.
I knew beyond doubt it would come apart and thought it would happen sooner.

All i ever got was advice to invest in things that have since gone bad.
However this in itself taught me something useful - If the money boyz recommend it, you are better off avoiding it.
And ultimately, if the money boyz want you to play with their paper money, you are better off avoiding it ....... Just took me several years to work it out and only got fully into metals in '10