What does RDR stand for in financial regulation?

RDR stands for Retail Distribution Review, a significant initiative implemented by the Financial Services Authority (FSA) in the UK aimed at improving the transparency and professionalism in the retail financial advice market. The primary focus of the RDR was to enhance consumer protection and ensure that individuals receive advice that is in their best interests.

One of the key aspects of the RDR was the requirement for financial advisers to hold higher qualifications and adhere to stricter standards of conduct. This was intended to foster a more trustworthy financial advice industry by reducing conflicts of interest, such as commission-based remuneration linked to the sale of financial products. As a result, consumers would have access to clearer and more unbiased advice.

The other options listed do not reflect the established terminology or initiatives within the financial regulatory framework in the UK. The emphasis of RDR on professionalism and transparency in retail financial services is central to its purpose and impact, making it a critical component of modern financial regulation.