Some 10 per cent of advisers who offered independent financial advice prior to the RDR have moved to a restricted model, according to research by NMG Consulting.
NMG conducted a poll of 397 financial advisers between January and March. The results show the proportion of restricted advisers has risen from 3 per cent in Q4 2012 to 10 per cent now.
A total of 15 per cent say they expect to be operating a restricted model in 12 months’ time.
NMG director David Burns says: “These results provide early support of NMG’s forecast that around 60 per cent of the pre R-Day IFA population will be restricted by 2016. We expect this shift to be gradual as adviser firms come to accept that their current model is restricted by default.
“In addition, we anticipate that over time advisers will recognise there are costs and risks associated with supporting the wider definition of whole of market, yet few of their clients require access to the broader product range.”