View more on these topics

Solicitor referrals must only be made to independent advisers, says SRA

The Solicitors’ Regulation Authority has confirmed that referrals of clients by solicitors for financial advice may only be made to independent financial advisers.

This follows claims from SIFA that solicitors are in some cases referring clients to multi-tied sales organisation St James’s Place.

Last month the FSA proposed a distinction between independent advice and restricted advice in its RDR consultation paper.

The SRA, the regulatory arm of the Law Society, says: “The SRA is aware that some law firms have been approached by multi-tied and tied advisers seeking to enter into restrictive arrangements to provide financial services to the law firms’ clients.

“Firms must always act in the best interests of their clients. This means that they must refer clients to independent financial advisers for investment advice.”

Sifa says confusion in the minds of solicitors as to the status of financial advisers has resulted in widespread breaches of the Solicitors’ Code of Conduct.

Sifa says it has received numerous calls from IFAs reporting instances of solicitors referring clients to St James’s Place.

It adds: “Where appropriate, this information has been passed to the SRA.”


Adrian Ware

Adrian Ware says a lingering sense of dissatisfaction with the private banking business and a desire to do something for himself were the driving forces behind his decision to set up on his own.

British GDP worse than expected

The contraction in British GDP in the second quarter of 2009 was worse than expected, according to figures from the Office for National Statistics.GDP fell 0.8% over the second quarter compared with a 2.4% contraction in the first three months of the year.Although a slower rate of contraction, there was little upside as the latest […]

Lawrence House reduces cash

Fund of funds manager Lawrence House has reduced cash to a minimum in its portfolios because fund manager Alan Stokes felt it was more dangerous to be out of the market than in it.


News and expert analysis straight to your inbox

Sign up


    Leave a comment