FSA research: Only 8% of IFAs to go restricted

FSA Letters 480

Only 8 per cent of IFAs are likely to switch to offering restricted advice post-RDR, according to figures from the FSA.

The latest statistics from the regulator on adviser RDR readiness show that, based on a survey of 1,436 advisers, 58 per cent are offering independent advice and are unlikely to switch to providing a restricted service instead. Eight per cent are IFAs who will switch to restricted.

A further 33 per cent are restricted advisers who are unlikely to switch to offer independent advice, and 1 per cent of advisers currently providing restricted advice are planning to offer independent advice from next year.

As at Q3, 86 per cent of advisers were qualified to QCF level four or above, with a further 10 per cent either waiting for the results of their final exam or studying.

Some 76 per cent of those polled held both a qualification and had completed any necessary gap-fill.

An FSA spokeswoman says: “We expect that the level of qualified advisers will increase further by 31 December.”

The latest figures on RDR readiness follow news yesterday that most advisers plan to continue advising clients with savings and investments of up to £75,000. The FSA survey found that 63 per cent of advisers polled are looking to retain clients with savings and investments of between £20,000 and £75,000, and 38 per cent of advisers plan to continue servicing clients with less than £20,000.