Personal Finance Society chief executive Fay Goddard has backed restricted advice, saying advisers can still offer independent advice if they are offering a limited range of products.
Speaking on board the Aurora at the PIMS conference last week, Goddard said advisers should not be put off by the term res-tricted. She said: “I know at the moment the vast majority of IFAs want to stay independent but if you cannot meet that very high whole of market standard that the FSA has set, you can still be independent with your advice and your services.
“The duty of care and loyalty is still to the client. It will still be independent advice but it may be from a restricted range of products and services, so I do not think we should be frightened of this word restricted.”
Chartered IFA firm LIFT-Financial joint chief executive Joel Adams said: “There is a confusion in terms. It is not a case of choosing between restricted and independence because you will still be able to be a restricted adviser and independent.
“Restricted does not necessarily mean being tied to individual product providers, it means your investment proposition is as narrow as most of our propositions are today.”
Honister Capital has committed to remaining independent. Strategy, product and commercial development director Alan Easter said although moving to a restricted model can save on research costs, independence is more important to advisers and clients.
Institute of Financial Planning chief executive Nick Cann expressed concerns about the different advice labels in use, saying it is difficult for clients to differentiate between independent, restricted, simplified and basic advice.