Legal & General says the restricted advice offering being introduced under the RDR may be similar to the way in which a typical intermediary business works today.
L&G RDR and commercial director Danny Wynn told delegates at the Money Marketing RDR Invitational that restricted advice is not necessarily tied.
He said: “It is wrong to assume that restricted advice means tied advice. All it means is that it does not meet the new independence requirements and that could look very similar to IFA services today, because the independence requirements are broadening.”
Wynn said there is a large proportion of the population that will not pay for independent advice but need more than a simplified service.
He said: “The real argument for restricted advice is not the rights and wrongs of independence but the economic reality of whether we can afford to offer independent advice to all those who want it, seek it or need it.
“Restricted advice can be delivered profitably to customers who otherwise would not have independent advice available to them.”