FSA: Independent advisers can refer to restricted firms post-RDR

Firms who refer clients to restricted advisers for investment advice will not have their independence threatened after implementation of the Retail Distribution Review (RDR) rules, the FSA has confirmed.

The regulator today issued finalised guidance on independent and restricted advice, following on from the guidance consultation issued in February. In a new paragraph, prompted by feedback it received from IFAs, it explained how referrals will affect status post-RDR. "If a firm does not provide any personal recommendations on retail investment products (RIPs) to a client, and refers them to another firm instead (for example, a firm that provides restricted advice), this will not affect its independent status. "We would, however, expect firms to undertake sufficient due diligence on...