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."
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client
The government is "in daily contact" with industry figures over the pensions dashboard as it prepares for the roll-out and its feasibility report, Guy Opperman has said.
Organisation led by Johnny Timpson
From 1 April 2019
Available in eight languages