Not sure - suggest Wealth Management and Compliance in the UK Essay

Not sure - suggest Wealth Management and Compliance in the UK - Essay Example These factors subject the historic wealth management attractiveness to low capital and low risks, but with high liquidity in the affected sectors (Fischer, Jonge, Ko, and Toepfer, 2013). The direct commercial effects of the vaulting regulatory costs include depreciation of the wealth management earnings, firms leaving or exiting the sector, and other firms withdrawing their products and services. Notably, these regulatory changes are affecting many businesses across the world; however, United Kingdom is one of the countries that the regulatory changes are affecting its firms. There are numerous regulatory measures in the United Kingdom, but the key regulatory measures that apply in the UK market space include Retail Distribution Review (RDR), (Alternative Investment Fund Managers Directive the (AIFMD), and Foreign Account Tax Compliance Act (FATCA). The FSA created Retail Distribution Review programme in June 2006; however, the programme became operation in December 2012. The FSA’s agenda in creating the RDR is to protect the customer. This programme will affect firms all over re value chain including the product manufacturers. Nonetheless, the major firms that will be affected include the asset managers and insurers and distributors including IFA’s, bonks and wealth managers. The RDR’s main aims include driving the structural changes across the retail investment industry for the customers to have confidence on the products and services they offered (RBC Wealth Report, 2013; Pg. 28). In other words, the RDR compels the firms to provide services and products that suit the needs of consumers. The RDR changed several fundamental aspects of distribution of corporate pensions and investment products including state of advice, adviser changing, professionalism standards, and platforms (Lassignardie, 2013; Pg. 25) . The RDR regulations are currently affecting the distribution models and intermediary markets. On the other hand, the ejection of commission