The FCA released a paper last week stating that any adviser firm that chooses to offer simplified advice cannot refer to itself as independent.
It says simplified advice should be a restricted activity.
It goes on to say that if a firm provides simplified advice (which it defines as restricted advice) in addition to independent advice, it should not promote itself as a provider of independent advice for its business as a whole (nor would it be appropriate for the firm to include the word ‘independent’ in its name).
I do not understand this logic.
If an IFA wants to offer a simplified advice process as well as fully independent advice, then surely the consumer will benefitIf the consumer wants advice, then they should be free to choose who provides this. If the advice required is of a simplified nature, then as long as the IFA firm provides this service and makes it clear at the outset that it is simplified and not independent and the consumer understands the focused nature of the advice, then that should be fine.
Consumers need choices and in financial services they also need expertise. If an IFA wants to offer a simplified advice process as well as fully independent advice, then surely the consumer will benefit.
Someone seeking simplified advice today may need independent advice in the future as their circumstances change. Surely it is better for the consumer if that advice is seamless and provided by the same adviser or firm.
Rab Shields is an independent financial adviser at Simple Solutions Financial Management
