What is the Retail Distribution Review? Arriving in January 2013, the Retail Distribution Review (RDR) seeks to address the lack of consumer confidence and trust in the retail investment market by introducing a more robust set of rules for the financial services industry when dealing with the public. RDR aims to ensure that consumers:  receive advice from highly respected professionals  are offered a transparent and fair charging system for the advice they receive  are clear about the type of service they receive

1. No Signatory mandate on file
Countdown to the Retail Distribution Review
Significant changes are due to take place in 2013, which are designed to improve standards within the “retail” arm of
the financial services industry, specifically in relation to the way financial advisers work with their clients.
Although we believe that Chartwell is already working under the proposed adviser regime, we feel that you may wish
to understand about the changes and how they may affect you.
What is the Retail Distribution Review?
Arriving in January 2013, the Retail Distribution Review (RDR) seeks to address the lack of consumer confidence and
trust in the retail investment market by introducing a more robust set of rules for the financial services industry when
dealing with the public.
RDR aims to ensure that consumers:
 receive advice from highly respected professionals
 are offered a transparent and fair charging system for the advice they receive
 are clear about the type of service they receive
A number of key regulatory changes will be introduced in 2013 which affect the relationship between the adviser and
consumer as well as the distribution of investment products and pensions:
Standards of Professionalism: this introduces a much higher minimum level of adviser qualification and evidence
of ongoing continuous professional development
Status of Advice: establishes a clear distinction between “independent” and “restricted” (including single/multi-tied)
advice
Adviser Charging: product providers will no longer be able to pay initial or trail commission on new products and
advisers can only charge ongoing fees for an ongoing service
Investment Platforms: must deliver transparent charges and greater efficiency of service
How will it affect me?
Although RDR will have some impact on the way Chartwell advises you in the future, we feel that many of the
legislation changes being introduced from January 2013 are already being offered by your financial adviser. In fact,
we are confident that we have exceeded these standards for several years, as we strive to deliver consistent high
levels of advice and client service.
Higher Professional Standards
The minimum qualification requirement for advisers will be QCF level 4. Advisers will need to hold a Statement of
Professional Standing (SPS) issued by a body accredited by the FSA and demonstrate that they continue to “top up”
their advice based knowledge every year with a minimum of 35 hours CPD (Continuous Professional Development).
All of the financial advisers at Chartwell hold the Level 4 qualification (often referred to as the Diploma) and, in most
cases, further specialist qualifications, training and relevant experience to ensure that robust client advice and
ongoing support is considered “standard service”.
Chartwell Wealth Direct , Chartwell Wealth Management and Chartwell Corporate Solutions are trading styles of Chartwell Financial Services Limited which is
authorised and regulated by the Financial Services Authority. Registered in England 02578206.

2. Status & Type of Financial Advice
Just when you thought that you understood that you could take advice from an “Independent” adviser (IFA) who
worked for you, or a “Tied” adviser whose advice represented a single service provider (like a bank or insurance co),
the range of advice types change completely in January. This will clearly make the decision of the type of adviser you
work with more complex.
New Advice Categories
The FSA now proposes a new advice landscape:
Independent advice is defined as “a personal recommendation to a retail client in relation to a retail investment
product where the personal recommendation provided” is
 based on a comprehensive and fair analysis of the relevant market and
 unbiased and unrestricted
Restricted advice includes all forms of advice which don’t meet the 'independence test'. Restricted advice must
meet the same suitability, adviser charging and professional standards as independent advice. The key difference is
the requirement to disclose the nature of the restriction.
Simplified advice a form of restricted advice, is not defined but describes a streamlined advice process, typically
automated, which aims to address the straightforward needs of customers.
Basic advice covers a narrow product range of stakeholder-style investment and savings. The qualification
requirements are lower, as are remuneration restrictions.
Chartwell will continue to offer Independent advice as we believe that many of our clients require a wide breadth
of advice and access to all aspects of financial products and services both currently available and those that will
evolve in the future.
Under RDR, the definition of ‘whole of market’ has expanded and will now cover areas such as ETFs, private equity
and other more esoteric asset classes. An independent adviser must demonstrate they have considered all of these
products in the process of addressing your financial requirements.
How will I pay for advice in the future?
One of the most significant changes initiated by the RDR is that product providers will no longer be able to pay initial
or trail commission on new products. This will be replaced by Adviser Charging.
Under this arrangement, all financial advisers will now have to outline and agree fees for their advice in advance. You
will become responsible for meeting these fees and product providers will no longer be able to pay a commission. For
many clients this will be the first time they have had to pay a fee directly for advice. Firms will be required to provide
clear, concise disclosure documents that help customers to understand the services being provided and to recognise
the cost and value of advice.
Chartwell are a fee based financial adviser. For an existing client of the firm you are likely to find that you will see no
significant change in the way you work with your financial adviser. For the last 5 years we have offered our clients 2
methods of paying for our service – a direct fee payable by the individual, or deduction of the cost of advice from the
investment or pension product.
This basis of remuneration meets the Adviser Charging requirements so no changes are required, but at your next
review, we will discuss and agree what we will charge you going forward, the payment options that are available,
and what services we will provide.