It is unlikely clients would understand the label 'restricted whole of market' so advisers should avoid the term, Rory Percival has said.
Speaking at the Personal Finance Society (PFS) annual conference he said the advice community has two clear divisions - restricted and independent - and a third category should be avoided.
He said: "We do not have a 'whole of market restricted' for consumers. We have independent or restricted."
Percival explained advisers can still use the terminology 'whole of market' and 'restricted' in the same sentence but they needed to be much clearer in their explanation to clients.
He said specialisms in certain areas, for example pensions, could result in advisers stating they are restricted to retirement planning but select 'from the whole of market' within pensions.
"Introducing a third category, is the client going to understand that? Probably not. You haven't explained the nature of your restriction."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected