Advisers looking to remain independent: Tenet

Tenet has claimed that the majority of advisers will remain independent, once they are presented with the “full facts” regarding implementation of the new advice rules.

During 17 regional and online events throughout February and March, over 400 advisers were asked to confirm their likely advice route, based upon their initial interpretation of the seemingly onerous requirements to remain independent.

57% said they were committed to a purely independent route, with a further 20% stating they would adopt a hybrid independent/restricted model.

Tenet said that when advisers were given detailed analysis, the percentage selecting independence, including operating a hybrid model, grew to 90%.

Meanwhile, the number of advisers who said they would favour a restricted model fell by more than half – with only 10% still saying they would opt for a restricted proposition.

Keith Richards, Tenet’s distribution and development director, said: “Conflicting views from across the market are adding further confusion rather than creating clarity.

“In simple terms, the new rules mean that IFAs will have to consider a wider range of investments than is required at present, which has led many to believe that maintaining an independent status is simply too onerous, adds little consumer value and will potentially increase both risk and operating costs.

“The general perception that choosing an independent advice route post-RDR will increase both cost and risk may at first appear intuitive, but we can find no meaningful evidence to support that notion, especially when compared to restricted, whole-of-market or multi-tie models.

“In short, there is an enormous amount of misconception about what it will take to remain independent. With the effective use of panels and processes, it need not be any more challenging or time-consuming than it is at present.

“That being said, we equally appreciate the potential reasons for considering a restricted advice alternative, but predict independence will dominate post-RDR. Given the various models that could emerge, we will support advisers whatever their choice.”