Less than 4 per cent of SimplyBiz and Compliance First advisers say they will consider the restricted advice route post-RDR, according to SimplyBiz chairman Ken Davy.
The support services firm surveyed 500 of its member IFAs and found that appetite for the restricted route dropped further still when advisers realised that the qualification and remuneration requirements are the same for independent and restricted advice.
Davy says he is not surprised by the findings.
He says: “One would not use a lawyer or accountant whose advice was restricted, so why on earth would you take your finances to someone whose advice was restricted to a limited range of solutions?
“Multi-ties were a failure in 2002 and under their new name of restricted advice, I believe they are even less likely to prosper in 2013. The absolute reality is that restricted advice is bad for the consumer and bad for professionalism. Invariably the end result is that manufacturers and distributors work together to create products that deliver less choice to the consumer at a higher cost. It is a road to nowhere for IFAs and their clients.”