View more on these topics

FSA warns on split identity

Firms offering both restricted and independent services after the RDR should not use the word “independent” in their trading name.

In its guidance consultation on independent and restricted advice, published this week, the regulator says firms with one or more restricted adviser cannot say the entire business is independent.

It says: “A firm that provides both independent and restricted advice should not hold itself out as acting independently for its business as a whole.”

The FSA says firms could set up two trading names to differentiate between independent and restricted services.

The guidance states appointed representatives should not hold themselves out as acting independently for their business unless all their personal recommendations meet the independent standard.

The guidance also warns advisers who offer a restricted service that they cannot give clients the impression that their range of products has been restricted to those that are most suitable for the client.

Carbon Financial managing director Gordon Wilson says: “The problem is that a client’s definition of independent is very different from the regulator’s definition.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com