View more on these topics

Aifa says consider restricted option

Aifa says advisers should seriously consider offering restricted advice but it should not be seen as a “soft option”.

The trade body’s new RDR paper, Advice Horizons, says restricted advice could generate efficiencies and offer new opportunities to some IFA firms.

Aifa points to the fact that restricted advice does not lower the threshold for professionalism or advisory standards.

The paper says: “Until recently, restricted advice has been viewed with disdain by many IFAs but there is a growing view that ’constraining’ a firm’s activities, and in particular its business processes, can generate efficiencies and also open up the opportunities to partner or joint venture with manufacturers and fund management companies – creating new revenue streams. Adopting a restricted advice model is not a soft option and should be given serious consideration as part of a strategic review.”

The paper says independent advice will become a “premium service” which will create new marketing opportunities as well as financial and reputational rewards.

It says: “Clients value the clarity and certainty of the fact that the adviser works on their behalf and, time and again, research proves that it is independent financial advisers who are the most trusted group in retail financial services.”

Aifa says many firms may look to offer a restricted service alongside an independent offering, depending on the service needs of their clients.
The paper suggests advisers could look to develop “advisory chambers” with companies retaining brand and ownership but sharing back-office efficiencies.

It says such a relationship could progress, so firms provide shared services to clients based on the depth of expertise within their chambers, which could be nationally dispersed.

The paper says: “The “ownership” of the client could be resolved on a formal, contractual basis, or via an informal mechanism based on quality and value of referrals. “Of course, larger firms may also use this model as they centralise specialist advice areas in order to ensure quality of advice, and hence lower their risk profile.”



Out of context

“I’ve managed to persuade Aston to join us from his holidays. He can’t resist a tap dancer in tight trousers.”MGM’s Lynsay Dickinson lures director of sales and marketing Aston Goodey to Tap Dogs the musical. “Just lie on the deck and you’ll be fine.”Skipper on board a sailing trip with Honister Capital in Cowes gives […]

Life offices wait until after sale to send out ABI’s PMI guide

The ABI’s own research has revealed that its guide to buying private medical insurance is only being sent to most customers after they have decided to take out a policy. The Association of British Insurers published research on its website last week looking at customers’ understanding of the cover provided by PMI. The research was […]


ABI says industry unlikely to fill Nest gap

The Association of British Insurers says it is unlikely providers could fill the gap if the National Employment Savings Trust did not go ahead, even if auto-enrolment parameters were adjusted. Money Marketing revealed earlier this month that the Government has been holding talks with product providers regarding the feasibility of an industry-led replacement for Nest. […]

Tax expert warns over HMRC offshore letters

Offshore account holders who signed up for the 2007 tax amnesty have been warned to speak to an adviser before responding to a questionnaire sent out by HM Revenue & Customs. HMRC is writing to 600 offshore account holders who registered for the 2007 tax amnesty to gather information on how the accounts have been […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm