Restricted advisers will be few post-RDR

01 August 2011

Lyssa Barber, Managing Consultant & Head of Private Wealth Management at Allemby Hunt talks to FT Advisor.

Restricted advisers will be "few and far between" as it poses "too much of a risk" post-RDR from a regulatory perspective, according to a recruitment expert.

It is extremely dangerous for advisers to become restricted post-Retail Distribution Review (RDR) as their information to clients could be misconstrued as advice, according to Lyssa Barber, managing consultant at specialist financial recruitment company Allemby Hunt.

There will be unqualified individuals who will be retained by their firm post-RDR because of their strong networking skills and client management relationship, claimed Ms Barber.

However, she warned those advisers who planned to work as an introducer by identifying clients and introducing them to an institution could fall outside Financial Services Authority (FSA) regulation as clients could misconstrue a statement as advice.

Ms Barber warned a paid introducer who was finding out a client's long-term investment aims could make an "off the cuff comment" which could be considered as advice.

She said: "If the client followed that advice and they were not happy down the line, it could all come back to bite the hand off the adviser."

Ms Barber warned they would have to be accompanied at all times by a fully-qualified adviser .

She said: "Doubling up in terms of man power just isn't cost effective.

"The restricted adviser will be few and far between as it poses a risk from a regulatory perspective."