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From Adviser Guide: Independent vs Restricted

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.

By Emma Ann Hughes | Published Jun 13, 2012 | comments

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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