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IFAs more likely to disclose status than restricted peers

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Independent advisers are far  more likely to declare their regulatory status on their website than their restricted peers, according to new research.

In a survey conducted by Money Marketing and adviser consultancy The Yardstick Agency, 83 per cent of independent advisers said they noted their independent status on their website, compared to 38 per cent of restricted advisers.

Nearly 80 per cent of the independent advisers that declared their status did so on their homepage, whereas no restricted advisers said they put their regulatory status on the homepage of their website.

Only around a third of all advisers displayed their fees online, however, with no significant difference between how likely independent and restricted advisers were to do so.

Fewer than one in five advisers included a sample copy of a client agreement on their website, though independent advisers were more likely to do so.

In the survey of 163 advisers, almost all who had achieved chartered or certified status included this on their website.

85 per cent of independent advisers with the higher qualifications displayed these, as did 100 per cent of the restricted advisers.

This article is part of a Money Marketing’s series on adviser charges and pay. For a full discussion of the results of the research see next week’s magazine.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This is news? It took research to discover this? Well I never – who would have thought!

    Of course IFAs declare status – it is something to be proud of. You wonder why restricted advisers don’t? You need to use just a little imagination. So a prospect goes to the website and sees a notice which in effect says “I can only advise on certain things and not on everything”.

    Do you really think that the prospect won’t just click away?

  2. I am confused. As restricted firms assure us that the reason they are restricted is to a) avoid unnecessary research costs (although there is no evidence that restricted firms charge lower fees than IFAs) b) stop them from inadvertantly flogging clients a UCIS by accident, surely they should be trumpeting their restricted status from the rooftops so clients know how safe and low-cost they are.

  3. I thought it was a regulatory requirement for all adviser firms to disclose their status, not just on their website but in their paper IDD’s. I always explain to clients at our very first meeting my chosen areas of restriction (and the reasons why). Then again, a quick scan of ad’s in the Yellow Pages shows that most of them don’t even include the statement Authorised and Regulated by the FCA.

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