The FSA has finalised guidance on restricted and independent advice as part of RDR rules, which will include life policies, stakeholder pension schemes and personal pension schemes in its definition of retail investment products, alongside funds, investment trusts, investment trust savings schemes.

This finalised guidance will mean a proportion of private client investment management companies will be unable to take on the ‘independent’ label post-retail distribution review (RDR).

The regulator said that an independent firm is one characterised by the following:

  • Offers advice on all relevant retail investment products which could meet the investment needs and objectives of a retail client;
  • Offers truly independent advice that covers all products suitable for their clients; and is
  • Not incentivised to recommend one product over another.

Source: Citywire.  Read full article here.