Aifa is concerned that many intermediaries do not understand the difference between the new forms of advice they will be able to offer in a depolarised world.
Director general Paul Smee says there is a lot of misapprehension in the market over what it will mean for an adviser to be independent, whole of market or multi-tied.
He points to what he des-cribes as a key issue about the difference between a whole-of-market offering and an independent offering, reminding intermediaries that while a whole-of-market adviser does not have to offer a fee option to a customer and an independent adviser does, there is no presumption that a customer will go for the independent adviser's fee-paying option.
Smee says a decision about the status of a business after depolarisation is very important and should not be rushed.
He says: “I want people to be fully aware of their options before they make any decisions and I am concerned that there is a lot of confusion out there at the moment.”