<br />
July 2010<br />
F cus<br />
Regulation & legislation focus<br />
<br />
<br />
<br />
RDR – Now is<br />
the time to act.<br />
<br />
As we move into an implementation phase of the RDR, the<br />
recent publication of the FSA's policy statement PS10/6,<br />
which includes formal feedback to CP09/18, highlights some<br />
significant issues for advisers around charging for advice and<br />
disclosure. Here, Prudential's Nick Hunt reviews some key<br />
areas for consideration including:<br />
> The need for a working knowledge of the wider range<br />
of retail investments.<br />
<br />
> How `restricted advice' could be an alternative or<br />
compliment an independent advice service.<br />
<br />
> The impact of `adviser charging' for advisers and<br />
product providers.<br />
&<a title="Oracle - July 2010 page 1" href="http://viewer.zmags.com/publication/2d0b13a3?page=1">oracleJuly 2010 Technical Insight fo</a> oracleJuly 2010 Technical Insight fo<a title="Oracle - July 2010 page 2" href="http://viewer.zmags.com/publication/2d0b13a3?page=2">July 2010</a> July 2010<a title="Oracle - July 2010 page 3" href="http://viewer.zmags.com/publication/2d0b13a3?page=3">Technical Insight – for adviser use onlyoracleC</a> Technical Insight – for adviser use onlyoracleC<a title="Oracle - July 2010 page 4" href="http://viewer.zmags.com/publication/2d0b13a3?page=4">July 2010ForewordHello. Welcome to </a> July 2010ForewordHello. Welcome to <a title="Oracle - July 2010 page 5" href="http://viewer.zmags.com/publication/2d0b13a3?page=5">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 6" href="http://viewer.zmags.com/publication/2d0b13a3?page=6">July 2010Election focusBudget 2010 –wh</a> July 2010Election focusBudget 2010 –wh<a title="Oracle - July 2010 page 7" href="http://viewer.zmags.com/publication/2d0b13a3?page=7">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 8" href="http://viewer.zmags.com/publication/2d0b13a3?page=8">July 2010The EconomyThe Budget sets out </a> July 2010The EconomyThe Budget sets out <a title="Oracle - July 2010 page 9" href="http://viewer.zmags.com/publication/2d0b13a3?page=9">Technical Insight – for adviser use onlyC</a> Technical Insight – for adviser use onlyC<a title="Oracle - July 2010 page 10" href="http://viewer.zmags.com/publication/2d0b13a3?page=10">July 2010the base does not seem to have b</a> July 2010the base does not seem to have b<a title="Oracle - July 2010 page 11" href="http://viewer.zmags.com/publication/2d0b13a3?page=11">Technical Insight – for adviser use onlyt</a> Technical Insight – for adviser use onlyt<a title="Oracle - July 2010 page 12" href="http://viewer.zmags.com/publication/2d0b13a3?page=12">July 2010to effect. The cash allowance wi</a> July 2010to effect. The cash allowance wi<a title="Oracle - July 2010 page 13" href="http://viewer.zmags.com/publication/2d0b13a3?page=13">Technical Insight – for adviser use onlyC</a> Technical Insight – for adviser use onlyC<a title="Oracle - July 2010 page 14" href="http://viewer.zmags.com/publication/2d0b13a3?page=14">July 2010Have youfuture-proofedyour pension</a> July 2010Have youfuture-proofedyour pension<a title="Oracle - July 2010 page 15" href="http://viewer.zmags.com/publication/2d0b13a3?page=15">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 16" href="http://viewer.zmags.com/publication/2d0b13a3?page=16">July 2010> Extra product costs should be</a> July 2010> Extra product costs should be<a title="Oracle - July 2010 page 17" href="http://viewer.zmags.com/publication/2d0b13a3?page=17">Technical Insight – for adviser use onlyF</a> Technical Insight – for adviser use onlyF<a title="Oracle - July 2010 page 18" href="http://viewer.zmags.com/publication/2d0b13a3?page=18">July 2010Example of the potential impact </a> July 2010Example of the potential impact <a title="Oracle - July 2010 page 19" href="http://viewer.zmags.com/publication/2d0b13a3?page=19">Technical Insight – for adviser use onlyP</a> Technical Insight – for adviser use onlyP<a title="Oracle - July 2010 page 20" href="http://viewer.zmags.com/publication/2d0b13a3?page=20">July 2010Advisers will naturally want to </a> July 2010Advisers will naturally want to <a title="Oracle - July 2010 page 21" href="http://viewer.zmags.com/publication/2d0b13a3?page=21">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 22" href="http://viewer.zmags.com/publication/2d0b13a3?page=22">July 2010Advantagesof third partypensioncon</a> July 2010Advantagesof third partypensioncon<a title="Oracle - July 2010 page 23" href="http://viewer.zmags.com/publication/2d0b13a3?page=23">Technical Insight – for adviser use onlyI</a> Technical Insight – for adviser use onlyI<a title="Oracle - July 2010 page 24" href="http://viewer.zmags.com/publication/2d0b13a3?page=24">July 2010Other tools help demonstrate the</a> July 2010Other tools help demonstrate the<a title="Oracle - July 2010 page 25" href="http://viewer.zmags.com/publication/2d0b13a3?page=25">Technical Insight – for adviser use onlyJ</a> Technical Insight – for adviser use onlyJ<a title="Oracle - July 2010 page 26" href="http://viewer.zmags.com/publication/2d0b13a3?page=26">July 2010John's youngest son Vince is age</a> July 2010John's youngest son Vince is age<a title="Oracle - July 2010 page 27" href="http://viewer.zmags.com/publication/2d0b13a3?page=27">Technical Insight – for adviser use onlyT</a> Technical Insight – for adviser use onlyT<a title="Oracle - July 2010 page 28" href="http://viewer.zmags.com/publication/2d0b13a3?page=28">July 2010In summary, clients who have the</a> July 2010In summary, clients who have the<a title="Oracle - July 2010 page 29" href="http://viewer.zmags.com/publication/2d0b13a3?page=29">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 30" href="http://viewer.zmags.com/publication/2d0b13a3?page=30">July 2010Advice, adversity andan agein</a> July 2010Advice, adversity andan agein<a title="Oracle - July 2010 page 31" href="http://viewer.zmags.com/publication/2d0b13a3?page=31">Technical Insight – for adviser use onlyI</a> Technical Insight – for adviser use onlyI<a title="Oracle - July 2010 page 32" href="http://viewer.zmags.com/publication/2d0b13a3?page=32">July 2010In Gulliver's Travels, Jonathan </a> July 2010In Gulliver's Travels, Jonathan <a title="Oracle - July 2010 page 33" href="http://viewer.zmags.com/publication/2d0b13a3?page=33">Technical Insight – for adviser use onlyt</a> Technical Insight – for adviser use onlyt<a title="Oracle - July 2010 page 34" href="http://viewer.zmags.com/publication/2d0b13a3?page=34">July 2010Recent years have also seen the</a> July 2010Recent years have also seen the<a title="Oracle - July 2010 page 35" href="http://viewer.zmags.com/publication/2d0b13a3?page=35">Technical Insight – for adviser use onlyO</a> Technical Insight – for adviser use onlyO<a title="Oracle - July 2010 page 36" href="http://viewer.zmags.com/publication/2d0b13a3?page=36">July 2010IFAs are responding to the chall</a> July 2010IFAs are responding to the chall<a title="Oracle - July 2010 page 37" href="http://viewer.zmags.com/publication/2d0b13a3?page=37">Technical Insight – for adviser use only </a> Technical Insight – for adviser use only <a title="Oracle - July 2010 page 38" href="http://viewer.zmags.com/publication/2d0b13a3?page=38">July 2010F cusRegulation & legislation focus</a> July 2010F cusRegulation & legislation focus<a title="Oracle - July 2010 page 39" href="http://viewer.zmags.com/publication/2d0b13a3?page=39">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 40" href="http://viewer.zmags.com/publication/2d0b13a3?page=40">July 2010`Restricted advice':complimenti</a> July 2010`Restricted advice':complimenti<a title="Oracle - July 2010 page 41" href="http://viewer.zmags.com/publication/2d0b13a3?page=41">Technical Insight – for adviser use onlyA</a> Technical Insight – for adviser use onlyA<a title="Oracle - July 2010 page 42" href="http://viewer.zmags.com/publication/2d0b13a3?page=42">July 2010The FSA see `negative charging'</a> July 2010The FSA see `negative charging'<a title="Oracle - July 2010 page 43" href="http://viewer.zmags.com/publication/2d0b13a3?page=43">Technical Insight – for adviser use onlyT</a> Technical Insight – for adviser use onlyT<a title="Oracle - July 2010 page 44" href="http://viewer.zmags.com/publication/2d0b13a3?page=44">July 2010> Are there any additional s</a> July 2010> Are there any additional s<a title="Oracle - July 2010 page 45" href="http://viewer.zmags.com/publication/2d0b13a3?page=45">Technical Insight – for adviser use onlyRe</a> Technical Insight – for adviser use onlyRe<a title="Oracle - July 2010 page 46" href="http://viewer.zmags.com/publication/2d0b13a3?page=46">July 2010The table below gives a summary </a> July 2010The table below gives a summary <a title="Oracle - July 2010 page 47" href="http://viewer.zmags.com/publication/2d0b13a3?page=47">Technical Insight – for adviser use onlyQ</a> Technical Insight – for adviser use onlyQ<a title="Oracle - July 2010 page 48" href="http://viewer.zmags.com/publication/2d0b13a3?page=48">July 2010the new level 4 which will lead</a> July 2010the new level 4 which will lead<a title="Oracle - July 2010 page 49" href="http://viewer.zmags.com/publication/2d0b13a3?page=49">Technical Insight – for adviser use onlyi</a> Technical Insight – for adviser use onlyi<a title="Oracle - July 2010 page 50" href="http://viewer.zmags.com/publication/2d0b13a3?page=50">July 2010Action required nowThere is muc</a> July 2010Action required nowThere is muc<a title="Oracle - July 2010 page 51" href="http://viewer.zmags.com/publication/2d0b13a3?page=51">Technical Insight – for adviser use onlyA</a> Technical Insight – for adviser use onlyA<a title="Oracle - July 2010 page 52" href="http://viewer.zmags.com/publication/2d0b13a3?page=52">July 2010Regulation & legislation focusDel</a> July 2010Regulation & legislation focusDel<a title="Oracle - July 2010 page 53" href="http://viewer.zmags.com/publication/2d0b13a3?page=53">Technical Insight – for adviser use onlyGi</a> Technical Insight – for adviser use onlyGi<a title="Oracle - July 2010 page 54" href="http://viewer.zmags.com/publication/2d0b13a3?page=54">July 2010to imagine how an IFA will be ab</a> July 2010to imagine how an IFA will be ab<a title="Oracle - July 2010 page 55" href="http://viewer.zmags.com/publication/2d0b13a3?page=55">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 56" href="http://viewer.zmags.com/publication/2d0b13a3?page=56">July 2010Business model focusYour Client </a> July 2010Business model focusYour Client <a title="Oracle - July 2010 page 57" href="http://viewer.zmags.com/publication/2d0b13a3?page=57">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 58" href="http://viewer.zmags.com/publication/2d0b13a3?page=58">July 2010Contact UsSpeak to a Technical</a> July 2010Contact UsSpeak to a Technical<a title="Oracle - July 2010 page 59" href="http://viewer.zmags.com/publication/2d0b13a3?page=59">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 60" href="http://viewer.zmags.com/publication/2d0b13a3?page=60">July 2010Client SupportoJuly 2010racl</a> July 2010Client SupportoJuly 2010racl<a title="Oracle - July 2010 page 61" href="http://viewer.zmags.com/publication/2d0b13a3?page=61">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 62" href="http://viewer.zmags.com/publication/2d0b13a3?page=62">theContributorsNick CannNick Cann CFP has bee</a> theContributorsNick CannNick Cann CFP has bee<a title="Oracle - July 2010 page 63" href="http://viewer.zmags.com/publication/2d0b13a3?page=63">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 64" href="http://viewer.zmags.com/publication/2d0b13a3?page=64">July 2010Russell WarwickRussell Warwic</a> July 2010Russell WarwickRussell Warwic<a title="Oracle - July 2010 page 65" href="http://viewer.zmags.com/publication/2d0b13a3?page=65">Technical Insight – for adviser use only</a> Technical Insight – for adviser use only<a title="Oracle - July 2010 page 66" href="http://viewer.zmags.com/publication/2d0b13a3?page=66">www.pruadviser.co.uk"Prudential" is a trading </a> www.pruadviser.co.uk"Prudential" is a trading <a title="Oracle - July 2010 page 67" href="http://viewer.zmags.com/publication/2d0b13a3?page=67">Suitable for use with clients. </a> Suitable for use with clients. <a title="Oracle - July 2010 page 68" href="http://viewer.zmags.com/publication/2d0b13a3?page=68">Have a look at the statistics below, whichhave b</a> Have a look at the statistics below, whichhave b<a title="Oracle - July 2010 page 69" href="http://viewer.zmags.com/publication/2d0b13a3?page=69">9% of over 50’sown a property inaddition to th</a> 9% of over 50’sown a property inaddition to th<a title="Oracle - July 2010 page 70" href="http://viewer.zmags.com/publication/2d0b13a3?page=70">1 Time to review and </a> 1 Time to review and <a title="Oracle - July 2010 page 71" href="http://viewer.zmags.com/publication/2d0b13a3?page=71">Key Points• Review your existing pensions paperw</a> Key Points• Review your existing pensions paperw<a title="Oracle - July 2010 page 72" href="http://viewer.zmags.com/publication/2d0b13a3?page=72">Examp elColin is 48, married with ch</a> Examp elColin is 48, married with ch<a title="Oracle - July 2010 page 73" href="http://viewer.zmags.com/publication/2d0b13a3?page=73">• Colin had two shorter periods of employme</a> • Colin had two shorter periods of employme<a title="Oracle - July 2010 page 74" href="http://viewer.zmags.com/publication/2d0b13a3?page=74">2 Consider where n</a> 2 Consider where n<a title="Oracle - July 2010 page 75" href="http://viewer.zmags.com/publication/2d0b13a3?page=75">Key Points• Consider where retirement income is </a> Key Points• Consider where retirement income is <a title="Oracle - July 2010 page 76" href="http://viewer.zmags.com/publication/2d0b13a3?page=76">Examp eJane is single and 54. She owns herown </a> Examp eJane is single and 54. She owns herown <a title="Oracle - July 2010 page 77" href="http://viewer.zmags.com/publication/2d0b13a3?page=77"> The adviser recommends that as she i</a> The adviser recommends that as she i<a title="Oracle - July 2010 page 78" href="http://viewer.zmags.com/publication/2d0b13a3?page=78">Other ConsiderationsWhat can I do?• Risk revie</a> Other ConsiderationsWhat can I do?• Risk revie<a title="Oracle - July 2010 page 79" href="http://viewer.zmags.com/publication/2d0b13a3?page=79">Suitable for use with clients. </a> Suitable for use with clients. <a title="Oracle - July 2010 page 80" href="http://viewer.zmags.com/publication/2d0b13a3?page=80">Have a look at the statistics below,which have b</a> Have a look at the statistics below,which have b<a title="Oracle - July 2010 page 81" href="http://viewer.zmags.com/publication/2d0b13a3?page=81">s l t t r rt </a> s l t t r rt <a title="Oracle - July 2010 page 82" href="http://viewer.zmags.com/publication/2d0b13a3?page=82">1 Ensuring you make full </a> 1 Ensuring you make full <a title="Oracle - July 2010 page 83" href="http://viewer.zmags.com/publication/2d0b13a3?page=83">Key Points• Well before retirement, you should c</a> Key Points• Well before retirement, you should c<a title="Oracle - July 2010 page 84" href="http://viewer.zmags.com/publication/2d0b13a3?page=84">Examp e 1lDerek and Rachael are 57 an</a> Examp e 1lDerek and Rachael are 57 an<a title="Oracle - July 2010 page 85" href="http://viewer.zmags.com/publication/2d0b13a3?page=85"> recommends that the £35,000 that is </a> recommends that the £35,000 that is <a title="Oracle - July 2010 page 86" href="http://viewer.zmags.com/publication/2d0b13a3?page=86">2 Receiving financial </a> 2 Receiving financial <a title="Oracle - July 2010 page 87" href="http://viewer.zmags.com/publication/2d0b13a3?page=87">Key Points• Helping children to gain a foothold </a> Key Points• Helping children to gain a foothold <a title="Oracle - July 2010 page 88" href="http://viewer.zmags.com/publication/2d0b13a3?page=88">Examp e 2lDavid and Laura are 63 and </a> Examp e 2lDavid and Laura are 63 and <a title="Oracle - July 2010 page 89" href="http://viewer.zmags.com/publication/2d0b13a3?page=89"> However the adviser has also discovere</a> However the adviser has also discovere<a title="Oracle - July 2010 page 90" href="http://viewer.zmags.com/publication/2d0b13a3?page=90">Other ConsiderationsWhat can I do?• Risk revie</a> Other ConsiderationsWhat can I do?• Risk revie