However, the Financial Conduct Authority (FCA) has recently noted that, on many occasions, this delegation has been to an unauthorised third party.

This has meant some clients were handed over to a firm or individual that has recommended them to switch into unsuitable, high-risk investments.

In some cases, according to the regulator, this has led to poor customer outcomes - and although the ‘advice’ was provided by a third party, the responsibility - and therefore any regulatory enforcement action - lies squarely with the initial adviser.

This guide aims to help advisers navigate the often difficult line between developing new business models post-Retail Distribution Review (RDR) and post-pension freedoms, and maintaining control and responsibility for the client.

It will discuss the reasons behind the increase in delegating advice, the potential benefit of delegating regulated activities in the correct way, the potential pitfalls of doing this the wrong way, the regulator’s views of delegating advice to a third party, and the alternatives.

Supporting information supplied by: Liz Coyle, compliance policy manager for SimplyBiz Group; Rachael Healey, senior associate for law firm RPC; Chris Hannant, director general of the Association of Professional Financial Advisers; Tony Miles, business development consultant for the Personal Finance Society; the Financial Conduct Authority; and Linda Todd, head of Bankhall operations.