- Title
- The impact of Retail Distribution Review (RDR) on the South African financial planning industry
- Creator
- Faul, Charmaine Hester
- Subject
- Financial planning industry -- South Africa Financial services industry -- South Africa
- Subject
- Financial services industry -- Law and legislation -- South Africa Corporate governance -- South Africa -- Finance
- Date Issued
- 2017
- Date
- 2017
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/15193
- Identifier
- vital:28177
- Description
- The Retail Distribution Review (RDR) was introduced by the Financial Services Board (FSB) to change the distribution and remuneration practices in the financial services industry in an attempt to ensure that clients receive fair treatment when purchasing financial products. The FSB aims to ensure that clients are sold products which are suitable for their financial needs and objectives; that clients receive appropriate advice which is not biased and not subject to product supplier influence in particular and that there is full transparency in the sales process. The current distribution of financial products and some financial advisor remuneration models are noted as contributing factors to the poor outcomes of current product selling practices. The impact of RDR on the sustainability of the South African financial services industry and advisor force is expected to be substantial, especially in terms of advisor remuneration, the reduction in qualified experienced advisors and a growing advice gap. This study reviewed the research conducted in the UK and Australia where RDR has been implemented and the impact thereof on the financial planning industry in these countries. This study aimed to determine if the South African advisors have started changing their business models to ensure that they are ready for the implementation of RDR and to reduce the impact of RDR on their practices. An environmental scan was conducted in order to identify and understand other factors specific to the South African context which will impact the financial services industry in the future. Research was conducted via online questionnaires as well as personal interviews to determine the perception of clients pertaining to the trustworthiness and professionalism of financial advisors and what they perceive as value in terms of financial planning, their knowledge of RDR and the changing environment. Industry experts were given the opportunity to share their views regarding the impact of RDR on the industry as well as their proposals in terms of the implementation and roll-out of RDR.
- Format
- xxiv, 138 leaves
- Format
- Publisher
- Nelson Mandela Metropolitan University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela Metropolitan University
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