From Adviser Guide:
Independent vs Restricted 1hr
Q: What are the pros of being restricted post 2012?
Opting for a restricted advice gives the firm more control over the products, providers or client segments that influence the firm’s overall advice proposition.
A restricted firm can choose to operate from a single tie arrangement, through multi-tie to a whole of market packaged products offering.
Andrew Power, lead Retail Distribution Review partner at Deloitte, said this will mean that increased controls and additional compliance overheads to maintain an unbiased and unrestricted approach to giving advice are not required.
Mr Power added the restricted solution may be more profitable as firm can advise more freely on their own products and on risk profiled solutions which may make the advice process more efficient.
Keith Richards, distribution and development director of Tenet, said some variances of a restricted model may also offer process efficiencies, or even commercial advantages.
Advisers who opt for restricted can also spend time developing their expertise and business model to take account of one or more areas, according to Chris Hannant, policy director of the Association of IFAs.
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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 pros of being 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 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?