Honister Capital says it does not intend to launch a restricted advice service because it sees no benefit for consumers or demand from its IFAs.
In an interview with Money Marketing at the Honister Capital annual conference in Brigh-ton last week, strategy, product and commercial development director Alan Easter says consumers would be better served by a whole of market adviser.
He says: “We do not see anything in the RDR paper that makes us believe delivery of restricted advice is a better way to interact with consumers than a whole of market adviser. If we did, we would build a restricted advice model.”
Chief operating officer Rich-ard Pearson says advisers do not see a commercial benefit in restricted advice.
He says: “Their attitude is that you have to get the same qualification and, having achieved that, what is the benefit for them or their clients in going restricted? I do not think they see too much commercial or operational benefit.”
Chief executive Mark Lund says the RDR is unlikely to reach its aim of providing clarity and better understanding for consumers as the difference between restricted and ind-ependent advice is not clearly defined.
He says: “I do not think the RDR will achieve that goal because there is not sufficient distinction between the two and, without that common definition, it is going to be cloudy rather than black and white.”
Honister board members called on advisers to get behind Aifa to create a strong voice for IFAs. Lund said: “If the industry and its participants feel they need a voice, that voice is Aifa so they should put up or shut up. We are not going to agree on everything but if we want a strong voice, we need to come together and Aifa has to be our vehicle.”