Retail Distribution Review: FSA announces members of industry groups

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Clive Briault

The industry has serious challenges to face from economic and market pressures as well as from complying with regulatory standards.

FSA/PN/006/2007
18 January 2007

The Financial Services Authority (FSA) today announced the industry figures that will lead the working groups of its Retail Distribution Review (RDR) to identify market solutions to core problems within the retail investment market.

The RDR's five key priorities and chairs of each group are:

Sustainability of the distribution sector:

Impact of incentives:

Professionalism and reputation:

Consumer access to financial products and services:

Regulatory barriers and enablers:

The role of each industry group is to reach broad consensus on the issues to be addressed; to identify both industry solutions and key barriers to delivering these solutions; and to engage the distribution market, as far as possible, in the achievement of these solutions.

Clive Briault, Managing Director of Retail Markets at the FSA, said:

"The Retail Distribution Review will act as a catalyst to improve the efficiency of the distribution of retail investment products and achieve better outcomes for consumers as a result. The appointment of industry leaders is an important step forward in achieving that."

"The industry has serious challenges to face from economic and market pressures as well as from complying with regulatory standards. The review will consider the bigger picture and the five priorities will not be viewed in isolation. We favour market solutions and are looking to facilitate an industry-led outcome."

Membership of the groups will comprise of industry practitioners from all types and sizes of firms in the distribution sector, along with other stakeholders and senior FSA staff. The groups will meet from January onwards. We are also publishing today the names of the members of the five industry groups. Key issues raised and suggested solutions will be fed into a Discussion Paper that is due to be published mid 2007.

Notes for editors

The FSA launched its Retail Distribution Review in June last year with the specific aim of identifying and addressing the root causes of problems that continue to emerge in the retail investment market (which includes banks, life insurers, financial advisers, building societies and fund managers). Following extensive discussions with the industry and others, the FSA identified the five themes to be addressed by the review. Clive Briault announced these five key priorities at the Ned Cazalet Consulting Conference on 2 November 2006.
The full list of chairs and members of the five industry groups is available on the FSA website.
The chairs of the five industry groups and biographies.
- Sustainability of the distribution sector:
  Jo Dawson, Chief Executive, Insurance and Investment Division, HBOS Group. Jo joined Halifax in 2000, initially as General Manager Retail Sales with responsibility for developing sales through the branch network. She became Head of Advisory Sales with responsibility for bancassurance, wealth management, business banking and retail businesses in Spain and Holland. In 2005 she was appointed Group Risk Director and became a member of the HBOS Group Executive Committee. In March 2006, Jo was appointed Chief Executive, Insurance and Investment. Jo is also a director of the Association of British Insurers, esure and St James' Place.
- Impact of incentives:
  Mike Yardley, Group Chief Executive, Royal London Group
  Mike is the Group Chief Executive of the Royal London Insurance Group, the largest mutual life insurance company in the UK. He has spent more than 30 years working in the insurance and investment industries in the UK. He took up his current position in April 1998 having spent the previous 5 years as Executive Chairman of Royal London Asset Management.
- Professionalism and reputation:
  Roderic Rennison, Group Corporate Director, Thinc Group
  Roderic has over 30 years experience in Financial Services. He was previously Group Financial Services Director of Bradford and Bingley Group. Before that Roderic had sales product and strategic responsibilities with Merrill Lynch and was a partner of Robson Rhodes, the Chartered Accountants. He is a member of the Executive Board and the Professional Standards Board of the Chartered Insurance Institute.
- Consumer access to financial products and services:
  Otto Thoresen, Chief Executive, AEGON UK
  Otto Thoresen began his career at Scottish Equitable in 1978. After qualifying as an actuary he served as Marketing Manager until leaving in 1988 to follow senior roles with Abbey Life and Royal Insurance before returning to AEGON UK in 1994 as Development Director. He was appointed Finance Director in 2000 and then became CEO of the UK operations of AEGON in 2005. He is a member of the ABI Board and chairs its audit committee. He is leading a feasibility study on behalf of the Government into the provision of generic financial advice, due to report by end 2007.
- Regulatory barriers and enablers:
  Dan Waters, Director of Retail Policy, FSA
  Dan Waters is the Director of Retail Policy and Asset Management Sector Leader, being responsible for the FSA's overall strategy and liaison with that industry sector. Prior to this Dan was Director of the Regulatory Strategy and Risk Division responsible for the FSA's strategic planning, risk management and assessment systems, performance measurement and risk analysis and research.
Representatives from the Association of British Insurers (ABI), Association of Independent Financial Advisers (AIFA), British Bankers Association (BBA), Investment Management Association (IMA), Association of Private Client Investment Managers and Stockbrokers (APCIMS) and Building Societies Association (BSA) have been invited to attend each industry group.
John Tiner launched the Retail Distribution Review at the Retail Intermediaries sector Conference on 14 June 2006.
Callum McCarthy's Gleneagles Savings & Pensions Industry Leaders' Summit speech given on 16 September 2006 looked at the distribution system for financial services to retail customers and questioned "is the present business model bust?"
The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

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