Investec announces RDR distribution model for UK

The proposition includes facilitating adviser charging on both structured deposits and investments, as well as commission options on some structured deposits, in addition to execution-only versions of structured investments.

Investec Structured Products has announced its RDR distribution model for the UK, which will enable it to service the needs of a diverse range of adviser business models in the country once RDR goes live in January.

Investec said in a statement that its RDR proposition aims to “offer flexibility and choice to intermediaries across a wide variety of business models, so advisers can use Investec’s structured products efficiently to the benefit of their client portfolios.”

Investec was first to the market with RDR-ready structured products, and has facilitated adviser charging on two of the more popular plans over the past four launches, with demand increasing from a very strong initial take up by around 40% over that period.

Full product details will be announced in December but the core product offerings are as follows:  

– Most structured deposits offered with commission

– All structured deposits will facilitate adviser charging

– All structured investments will facilitate adviser charging

– An execution-only service proposition with a small number of structured investments including initial commission payments

Gary Dale, head of intermediary sales, said: “RDR is definitely shaking up the industry and I believe it will be some time yet before we will be in a position to understand the full impact of the changes on intermediary businesses.

Investec’s aim for next year, he said, is to support advisers by offering a broad range of RDR compatible products, with unbundled, explicit and transparent charges highlighting the value in structured products that are priced without commissions using tools such as our valuations page.

He added: “Adviser firms will undoubtedly operate a wide variety of business models, therefore it was important for us to design and facilitate a proposition that suits these diverse intermediated businesses.”

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