There has never been a more clear risk to professional firms when making a referral to a financial adviser. So we have opened our doors to you in our due diligence questionnaire.
As the Retail Distribution Review (RDR) took effect on the 31st December 2012 the Financial Services Authority (FSA) created two meanings of the word independent; the dictionary definition understood by consumers and professionals alike, that is being free from third party influence.
The other the FSA is seeking to persuade consumers to adopt is a definition that attaches greater importance to the scope of the service offered rather than impartiality.
This has led the Solicitors Regulation Authority (SRA) to abandon its commitment to independent financial advice (against Law Society guidance) and permit solicitors to refer to restricted financial advisers as well, BUT, solicitors need to be in a position to make informed decisions about how to pursue the matter satisfying not only themselves but also their clients that the referral is in the clients best interests in other words carrying out due diligence on the financial advice firm.
The Institute of Chartered Accountants for England and Wales (ICAEW) stance post RDR is that members should only refer to advisers that are in a position to be able to give objective advice themselves…… independent advisers would currently be likely to be able to give such advice and that advisers offering restricted advice would need to be able to demonstrate their independence. They would then need to be assessed by the member with the potential referral again members responsibility to conduct due diligence.
We are proud to be Independent Financial Advisers, we value independence because clients and professionals alike have told us they value it too; we believe you cannot offer a holistic financial plan and comprehensive ongoing review service without being independent.
So to ensure that we can continue to work together in the most professional manner we have our due diligence questionnaire (available on request through our website) which provides you with everything you need to satisfy yourself and your clients that we will serve their best interests.
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