The Solicitors Regulation Authority (SRA) is to recommend that its members are allowed to refer clients to both restricted and independent advisers.
The SRA board will make its final decision at its next meeting, scheduled for Wednesday, but it is likely its current policy of only referring clients in need of investment advice to IFAs will be scrapped.
The solicitors' regulator said changes brought about by the Retail Distribution Review (RDR) meant it also had to change. Its code of conduct will be altered to reflect the changed advice landscape.
The SRA also said it needed to ensure that best outcomes for clients, and excluding restricted advisers could be damaging.
Agnieszka Scott, SRA director of policy, said despite opposition it would recommend allowing restricted referrals.
"Nothing has changed us from our belief that the best way forward is to implement our preferred option, and that's what we'll be recommending to the board. This represents the best fit with outcomes-focused regulation as solicitors, as highly qualified professionals, would be free to assess and discuss clients' needs, not be restricted by a prescriptive rule."
The SRA launched a consultation on independent financial advisers in July. It closed on September 10.
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