The impact of regulatory change on retail financial product distribution in the UK

The staggered emergence of the new regulatory regime affecting the distribution of retail financial products in the UK is leading to industry players taking strategic decisions under increased uncertainty. While the debate over the final form of the regulation continues, this paper identifies five emergent themes to the proposed regulatory changes and discusses their potential impact on product distribution. The paper concludes that the proposals constitute the catalyst for a wholesale restructuring of the processes and interactions between the manufacturing and distribution tiers of the UK financial services industry, wherein e‐business developments may take on increasing significance. Whether this restructuring would deliver the consumer benefits desired by the regulator remains an open question.