Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a638138
SRA board approves restricted referrals
by Michelle Abrego on Nov 28, 2012 at 14:37
The Solicitor Regulation Authority’s (SRA) has agreed to allow solicitors to make referrals to restricted advisers.
The SRA board decided today that solicitors should no longer have to make referrals to independent financial advisers as the term independent was no longer appropriate.
Earlier this week, the SRA announced it had recommended the board should allow solicitors to refer to any type of adviser provided they had conducted due diligence on them and discussed it with their clients.
The SRA launched a consultation earlier this year on solicitors referrals in light of the Financial Services Authority (FSA) redefining independence.
In its consultation paper published in July, the SRA outlined three possible options for the future of solicitor-adviser referrals having been invited to reconsider its stance by the FSA which conceded that its post-RDR definition of independence might be more onerous than the one currently used by the SRA.
The three options proposed by the consultation were:
- maintain its current rules that only independent advisers can receive referrals
- scrap the independent requirement altogether
- clients choose what type of adviser they want having discussed it with their solicitor
The board has backed option three.
News sponsored by:
Today's top headlines
Challenged by growing risk aversion?
Challenging financial markets over recent years have resulted in growing risk aversion among British savers and led many to seek safety in cash. Click here for more.
More about this article:
by Michelle Abrego on Dec 11, 2013 at 14:51