In the run-up to the 2013 RDR deadline, some product providers will be forced to focus resources to upgrading their systems to cope with challenges over VAT and platform cash rebates rather than launching new products, David Thompson, AXA Wealth’s director of UK distributors told the publication.

“Some providers will have to overhaul their products to introduce a new charging structure. They will then have to deal with the VAT complication and whatever happens with rebates. That is an onerous challenge to meet in 18 months,” he said.

RDR-related pressures will mean that there will probably be few new product launches over the next year to 18 months, according to Thompson.

He also brought into question the viability of a simplified advice proposition.

“You have the contradiction of a simplified advice model which incorporates advice and therefore all the regulatory responsibility and cost associated with that for the firm offering a simplified service. At the moment, I do not think it is viable,” he is quoted as having said.

Earlier this month the FSA rejected calls from a Treasury select committee that it should push back the implementation of the RDR in order to let advisors and firms to get their houses properly in order to meet the new requirements.