Impact of RDR proposals on the investments sector
06 July 2018: Johannesburg
– The Financial Sector Conduct Authority (FSCA) has released a discussion document
which focuses on the impact of the initial Retail Distribution Review (RDR) proposals on the investments sector.
The purpose of the document is to:
1. Share observations and current thinking
on specific initial RDR proposals to such an extent as to their impact on the investments industry, specifically Proposal Z and Proposal K, in the light of inputs received from stakeholders.
2. Elicit stakeholder input
on possible regulatory measures to:
• “Define the activity of “investment management” and consider the extent to which investment management needs to be demarcated from other forms of discretionary
• Clarify the nature of the legal and business relationships between different types of discretionary investment mandate holders, collective investment scheme management
companies and investment advisers, and how best to structure these in the regulatory framework to achieve our RDR objectives; and
• Provide for fee and remuneration arrangements in light of the above, to align with the RDR approach of aligning remuneration with actual activities performed and avoiding
unnecessary duplication of costs for the end investor.”
Download the discussion document to read more
. To participate in a wider member discussion or to provide your comments, join the conversation on the FPI member forum
on the FPI Online Community
and share your views.
submission deadline to FSCA is Friday, 17 August 2018.