From 31st December 2012, a new set of rules will apply to how
firms giving investment advice to retail clients can describe their
services. This paper is aimed at providing
a better understanding of the terms 'Independent' and 'Restricted'
so that firms and individual advisers can make an informed choice
about their business going forward.
As a professional body with members drawn from across the
adviser community, the aim of the PFS is to provide members with an
impartial interpretation and a better
understanding of the new rules. The Society seeks to ensure that
any decisions that members make are for the right professional and
commercial reasons, and not because
of misunderstanding or lack of clarity.
Now that the final rules have been made it is appropriate to
consider how to apply those rules in practice and we have included
examples which we hope will aid understanding
of this significant element of the Retail Distribution Review
In order to create as much of a common understanding as
possible, we have consulted a range of interested parties,
including professional and trade bodies, and the Financial
In brief, the changes are:
• if you declare yourself to be an independent adviser you will
need to consider a broader range of products (beyond packaged
• an independent adviser will need to provide unbiased,
unrestricted advice based on a comprehensive and fair analysis of
the relevant market; and
• all advisers will have to inform their clients before providing
advice, whether they provide 'independent or 'restricted'
Downlaod the full paper here »