From Adviser Guide:
Independent vs Restricted 1hr
Q: What are the pros of being independent post 2012?
The kudos of being able to maintain the independent label is likely to continue.
Being independent may help to attract clients seeking unfettered advice from a wider range of products, according to Andrew Power, lead Retail Distribution Review partner at Deloitte.
He said: “Firms may also be able to leverage higher advice fees from the independent label if they are able to successfully promote the advantages of independence and the associated levels of market experience and expertise that such independence will require.”
Keith Richards, distribution and development director of Tenet Group, said certain clients value and specifically seek out independent advice while others may require it due to their investment needs and objectives.
He said the legal and accountancy professions will continue to prefer independence for referral of clients in general.
Mr Richards said: “Consumer groups will generally promote independence as the best route for advice.”
By staying independent, Mr Richards said advisers could also offer continuity of their proposition with established clients.
Chris Hannant, policy director of the Association of IFAs, said the main benefit is the ability to hold yourself out as independent and without restriction regarding the financial advice and products you recommend.
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More in this guide
- Q: What does independent mean?
- Q: What do I have to do to be independent post 2012?
- Q: What are the cons of being independent post 2012?
- Q: What impact will independence have on PI insurance?
- Q: What does restricted mean?
- Q: What do I have to do to be restricted post 2012?
- Q: What are the pros of being restricted post 2012?
- Q: What are the cons of being restricted post 2012?
- Q: What impact will being restricted have on PI insurance?
- Q: What impact does my status have on how I charge clients?
- Q: What are the qualification requirements for advisers?
- Q: How should I explain my status to my clients?
- Q: Can I be both independent and restricted?