The Whitechurch Network is planning to launch a restricted advice proposition, saying the decision is “a no-brainer”.
The firm says many advisers still confuse restricted with tied advice and insists that restricted advice has an important role within firms.
Managing director Ian McIver says: “If the FSA’s definitions stay as they are on restricted advice, it is a bit of a no-brainer that we would offer a restricted model alongside an independent model. It will be difficult for firms to prove they are independent and not all firms will want to go through that process.”
He says the word restricted does not sound appealing to many advisers, who consider it to be a second-rate service. He says: “Some people may think because you are restricted you have to offer the specific products as you would do if you were tied, which is simply not the case.”
Brunning Newman Houghton director David Brunning says: “When you look at what the FSA will demand from an independent IFA, there will be a lot of good advisers calling themselves restricted.”