A database is being created with the purpose of bringing together local solicitors and IFAs to form ...
A database is being created with the purpose of bringing together local solicitors and IFAs to form joint ventures in the form of regional centres.
Ian Muirhead, managing director of the Association of Solicitors for Independent Financial Advice, said: 'We have set up three already and expect to have 12 by the end of the year and 50 within two years.'
Under proposals for depolarisation in the FSA's consultation paper 121, solicitors will only be able to refer clients to fee-based independent financial advisers, ruling out links with multi-tied advisers because of the Law Society's rules concerning payment by commission.
While the joint ventures will help prevent many intermediaries and solicitors from losing potentially lucrative revenue streams, there remain some concerns that there may be too few truly independent intermediaries to cope with the flow of business.
Tracey Mullins, spokeswoman for Aifa, said: 'It all hinges on the defined payment system, how flexible it will be and how many intermediaries retain the title of 'independent'.'
For solicitors to be able to recommend multi-tied agents to their clients, a change in the current Law Society rules would be required.
Mullins said Aifa is in discussions with both the Law Society and various accounting bodies, but they have yet to bear fruit.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till