Retaining independent status post-RDR will not be as onerous for large firms or networks as some in the industry believe, but will be an 'insurmountable challenge' for sole traders, acccording to the managing director of the Sense network.
Tim Newman said the release of several recent papers, including the FSA's guide - 'RDR: Is your firm on track?' - had convinced him that Sense, other networks and large IFA firms will be able to retain their independent status if they offer panels of experts, third-party research and shared advice. Sole traders, on the other hand, do not have the infrastructure to remain independent, he argued. Newman suggested individual advisers within Sense would not need to be competent on all retail investment products. "If my colleague assists with the pension element of my client's recommend...
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