PFS Member Director Vanessa Barnes FT Adviser interview

Regarding the effect of the RDR on professional advice in the ten years since its introduction, Barnes noted that there “is lots of evidence that the quality of advice has improved”. She went on to say that the PFS “would welcome the fact that it has strengthened the bond between advisers and their clients and made that the pivot of the relationship rather than having perhaps as much provider influence. So it's definitely been a success.”

Speaking on the impact of the RDR on the professionalisation of the financial planning sector, Barnes said, “for the PFS, it was broadcast loudly beforehand that it would be the death of financial services but our membership has increased by 30 per cent over that 10 years, and more importantly the number of chartered members we have has increased by 300 per cent. There's no question there has been a rise in the quality of professionalism within the profession."

Recognising that there has been an additional burden on advisers which is "not ideal", Barnes also explained that it is not necessarily the advice that has changed but the way in which it needs to be evidenced. She also said the PFS had a firm focus on solving the professional indemnity insurance problem the sector was facing as a result of regulatory changes, including the volatility of premiums, which she said is one of the biggest barriers to more people getting financial advice.

To hear more of Barnes’ views about the effect the RDR has had on financial planning and advice, and the way the PFS's membership has transformed over the past 10 years, watch the full video at the link below.

https://www.ftadviser.com/ftadviser-focus/2022/12/19/there-s-no-question-there-has-been-a-rise-in-the-quality-of-the-profession/

Learn more about financial planning on the PFS website and find a qualified financial adviser here: https://www.thepfs.org/yourmoney/find-an-adviser/