Private Office Asset Management Limited is ‘Independent’, and believes that RDR represents a positive development for the financial services industry. Its objectives and the cornerstones of its approach are in keeping with our own mission to deliver the best possible, high quality, service for our private clients.

A key requirement of RDR is that the charge for providing advice should be clearly distinguished from the charge for any other service, and in particular the FSA has been concerned that investment advisers have received commissions from product providers as a reward for the sale of certain investments. 

These commissions had the potential to compromise the impartiality of the advice offered; therefore under RDR advisers are no longer allowed to receive commissions in this way.

Historically, Private Office Asset Management has provided investment services on a fee-only basis, setting out our charges very clearly, and thus we have not worked on a commission basis and we are proud to say that we were already complying with this aspect of RDR prior to its introduction.

RDR also requires firms to classify themselves as either ‘Independent’ or ‘Restricted’. The distinction between the two is that “Independent” advisers can consider the whole investment universe, product types and products by all providers in making their recommendations to clients, whereas ‘Restricted’ firms will only consider a selected range offered by a limited number of providers.

Every client facing adviser must achieve higher minimum qualifications (Level 4), complete adequate and formalised Continuing Professional Development training (CPD) and must be issued with a Statement of Professional Standing (SPS) which defines activities / advice they are authorised to provide.