Openwork's new CEO Martin Davis says the FSA's proposed ‘restricted advice' tag is causing a degree of concern amongst its 2,600 multi-tied advisers.
Davis says the majority of Openwork’s advisers would be comfortable to continue with a multi-tied model, although it is possible the panel of products on which they recommend may be extended. However, what its advisers would be called under the post RDR regime is causing unease.
Davis says: “We know they don’t like the term ‘restricted advice’. At the end of the day the rules proposed concern a product range that is restricted and not restricted advice.
“There is a degree of concern here about how they speak to clients about this and represent themselves.”
Currently, Openwork’s members are multi-tied ARs, but there could be an option to offer services to directly authorised advisers in the future or help existing members transition to a DA model. Where necessary, Openwork advisers can currently access whole-of-market products, via referral to Openwork Market Solutions, the IFA arm of the group.
However, Davis says if Openwork did offer support services to directly authorised advisers it would require a completely different mentality as this area is very marketing and sales driven.
“For us, we need to leverage off what we already have. Also, with new regulations coming in, the overall level of compliance and support services will have to increase and their systems will have to improve.”
For the full interview with Martin Davis, see next week’s Professional Adviser.
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