The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

The Retail Distribution Review (RDR) is a Financial Conduct Authority (FCA) initiative that aims to provide greater clarity about different types of financial services available. It also seeks to improve transparency around the costs and fees associated with financial advice.

Retail distribution review (RDR) definition

The Retail Distribution Review (RDR) is a Financial Conduct Authority (FCA) initiative that aims to provide greater clarity about different types of financial services available. It also seeks to improve transparency around the costs and fees associated with financial advice.

The FCA is the financial services industry regulator, and it states that RDR is about establishing a ’resilient, effective and attractive retail investment market that consumers can have confidence in and trust at a time when they need more help and advice than ever with their retirement and investment planning.’ 

RDR came into effect on 31 December 2012, and its requirements apply to every advisor across the retail investment market. Specifically, RDR aims to ensure that each client of a financial advisor is offered a transparent fee structure, able to understand the services the advisor provides, and knows they are being advised by a respected professional.

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