Mark Garnier, MP for Wyre Forest, made clear to Hector Sants, chief executive of the FSA, that he disagreed with Mr Sants' conviction that the loss of up to 30% of IFAs through the implementation of RDR was "acceptable".
Questioning Mr Sants during the Treasury Select Committee on Tuesday Mark began by explaining that at least a third of IFAs are "outraged" by the new rules that are being brought about by the Retail Distribution Review, which include the prospect of new exams which take no account of the experience of the IFAs. Some IFAs boast up to thirty years in the industry yet face disqualification should they fail to pass the degree levelled exams. The RDR also bans IFAs from earning commission.
In the evidence session Mark also pointed out that we in the UK have the lowest savings ratio, and the highest personal debt of the G20. Our personal debt total stands at £1,455bn, an average of £28,000 per person. It is clear that we all need to manage our money better but, as Mark argues, without IFAs to help the ordinary man on the street this will not happen.
However, despite this, the man at the head of the organisation who set up RDR said "I do not think you should characterise the RDR as the panacea to the investment market and a solution that is going to lead to a new savings culture".
Commenting on the Committee session Mark said," I find it totally unacceptable that 2 to 3,000 individuals may lose their livelihoods on the whim of a regulator. These individuals are not high flying wealth managers - they are hard working individuals working for the ordinary saver and investor and an important asset to this country."
Mark, along with Harriett Baldwin MP for West Worcestershire, has called a debate on the impact of RDR on IFAs. It is to be held on 29th November.