1. RDR Retail Distribution Review A stimulus for discussion Gordon Sills

2. RDR RDR’s competitors for resources… Solvency II IFRS Reporting ECJ Judgement With Profits/Chrysalis FSA “Intrusion” Paper Other…

3. RDR Main objectives for RDR Clarity of status and services To address remuneration To improve professional standards

4. RDR RDR impact upon Product Providers Distribution relationships Products and pricing IT necessities Marketing material Point of sale material Compliance Financial assessments Cost estimates & control Planning and timetable AOB…

5. RDR Strategic implications Operational Financial Distribution IT Lines of business Business as usual More of the same New channels Systems Software DataMI More Fewer :

6. RDR Distributors may… Reduce in number Be fee based Be fee payment based Have two distinct operations Be tied in some way Be “pure protection” Want to offer simplified advice

7. RDR Simplified advice… Currently unclear FSA paper promised mid-year Would occupy the (very large) middle ground May “suit” many consumers May “suit” many intermediaries Will be needed and – fits with original RDR objective

8. RDR Simplified advice…start points for discussion It is advice (FSA) It needs a “qualified” adviser (FSA) Four key needs (ABI) Automated/IT driven (ABI) Decision trees Default “out” Code of conduct

9. RDR Simplified advice…engagement with FSA How it is delivered – guiding principles Which portfolio of products Consumer safeguards Level of qualifications needed Fit with other regulatory requirements

10. RDR Simple products - a good idea, but need to clarify… Basic advice – or simplified advice – or both? “Never a bad idea” “Without advice” possibly Awareness and triggers FSA and FOS viewpoints

11. RDR CEO views of RDR… one year ago

12. RDR CEO’s biggest challenges… one year ago Changing commission systems Systems implications Product & system changes Operational complexity Qualifications Culture, not IT Adviser changing model Reaching relevant clients Maintaining distribution through the IFA channel Margins and financial revenue charges Pricing pressure Timescales – “a lot to change”

13. RDR Your views on RDR: Opportunities… Threats… Strategic implications… Communications… Risk management… New IT capabilities… Estimated budget…

14. RDR Retail Distribution Review A stimulus for discussion Gordon Sills Gordon Sills Marketing Limited gordonsills@aol.com 07802 781815 Gordon Sills Gordon Sills Marketing Limited gordonsills@aol.com 07802 781815