The Impact of Retail Distribution Review on Aviva Research Paper

The Impact of Retail Distribution Review on Aviva - Research Paper Example As the industry involves customers, financial advisors, and financial service providers, there can be conflicts of interest between customers and financial advisors or company and financial advisors. This is called agency problem which leads failure of customers’ trust on market. Financial regulatory bodies aim to employ certain regulations to resolve these issues. The Financial Services Act had been attempting to realize the retail market of investment and the reason for the failure of customers trust. In order to retain the public confidence and trust the FSA introduced the Retail Distribution Review (Personal Financial Society. 2010). This retail review was launched in June targeting the standard and quality of financial advisory services given to the customer in the financial services industry. Through the RDR, the FAS aims to develop a retail market where customers easily understand the information; the financial firms fairly treat their customers and the customers will have much confidence to invest in the market (CISI. n.d.). The approach has been quite influential to keep the resilience, efficiency and the productivity of the retail investment market. RDR is supposed to modernize the industry by bringing back customer confidence to the market by offering them the best choices to fulfill their pension and savings needs. RDR not only approaches to solve the significant issues influential behind some of the longtime problems, but it also considers the operating procedure of the overall market of retail investments. At the same time, the authority was concerned about the future operational procedures of the retail industry. To maintain a control and authority over the fair operation of the investment retail industry, RDR has considered and modified a number of previous policy initiatives. The modifications and introduction of some new policies have been carried out taking due consideration of all of  the stakeholders’ interests including the practitioners and the consumers’ representatives in this industry.