This paper is one of a series of papers that the PFS is
producing under the Professional Direction title. This edition
replaces paper 2 first issued in September 2011. It represents the
PFS interpretation of the rules as far as we have been able to
ascertain them and follows FSA final guidance on Independent and
Restricted advice, published in June 2012. The paper has no formal
or regulatory status and is intended solely to assist members in
understanding the new rules.
From 31st December 2012 a new set of rules will apply to how
those giving investment advice to retail clients can describe their
In September 2011 we published a Professional Direction paper
aimed at providing a better understanding of the terms Independent
and Restricted so that firms can make an informed choice about
their business going forward.
Since September there has been continued debate and interest
around this subject which has resulted in further guidance from the
FSA in June 2012. This revised Professional Direction paper has
been produced to further clarify some of the outstanding issues and
replaces the earlier version.
As a professional body with members drawn from across the adviser
community, the PFS has no set agenda other than to provide members
with improved understanding of the new rules. We seek to ensure
that any decisions are made for the right professional and
commercial reasons, and not because of misunderstanding or lack of
clarity in application
of the new rules.
Now that the final rules are in place 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 (RDR). 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 Services Authority.
Download the full paper here »