Split roles could lead to grey area
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Some firms may look to split the traditional advisory role between client relationship managers and technical specialists, according to the Aifa RDR paper.
It highlights the rise of the paraplanner and expertise of other non-client-facing staff within IFA firms. It says some firms may look to evolve specialities to create a clearer separation of roles with a split between client-facing relationship managers and non-client-facing technical specialists.
The paper says many management consultancy firms operate a similar approach.
Aifa says this could create a “grey area” over responsibility for advice which would have to be resolved. “The answer to this question depends on how far along the fact-finding and advisory process the individual travelled before handing over to a specialist and this will be different between each firm,” says the paper.
The trade body suggests advisers looking to leave the industry due to the RDR could look at other options, such as becoming an introducer or an introducer appointed rep to a firm.
Aifa says individuals would not be able to give regulated investment advice but could still work with clients and provide new business sources for the firm.
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