The Retail Distribution Review (RDR) is set to see an explosion of advice "brokers", instead of restricted or independent advisers, according to Panacea IFA.
Chief executive Derek Bradley said the Financial Services Authority (FSA) had caused confusion with how it defines the two terms.
"Many years ago advisers and consumers understood the terms independent and restricted," he said.
"The FSA no longer distinguishes between independent and tied advisers because some firms operate both. They believe independent means offering a comprehensive range of products whereas consumers have always understood it being products from the whole of the market.
"Post-RDR the thinking is a number of firms will reluctantly realise this term will slip away from consciousness and be replaced by terms like adviser or even broker."
One term becoming increasingly popular is the independent financial retailer, or IFR, Bradley said.
Under this system, the client would get their "prescription" from an adviser, before it is dispensed by the IFR.
An IFR would be paid a fully-disclosed commission, just like any other retailer. They would be able to offer basic advice around the product being purchased, but would have to select a suitable provider to match the advice given by the IFA.
Financial services was increasingly becoming seen as a profession rather than an industry, meaning many were becoming uncomfortable with arranging the purchases of products.
Accountants, surgeons, architects and many other professions that the FSA would like to see financial advisers compared to do not deal in product, he added.
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