Anticipating the Retail Distribution Review
The Discussion Paper resulting from the FSA review of the failed business model for long-term savings in the UK will be presented by the FSA at a conference on 27th June. No Monkey Business Limited circulated this briefing to financial journalists, anticipating what it will say. Our advice: don’t expect any silver bullet – all the big initiatives tried by the FSA as all-powerful regulator have failed. This represents a more humble call to collective action by the industry, in other words market-based solutions underpinned by sound economics. By definition these have to be disruptive.
The biggest risk for disruptive businesss models in the UK is that the better customer proposition will not be valued by consumers. Whatever this report says, this is a huge disincentive in the UK where indifferent consumers invite poor service, poor products, poor value and hugely diminished outcomes for their savings. Even in a marketplace where firms comply with FSA principles of fair treatment of customers, we will still get the business models we deserve.