FCA to make advisers choose between independent and restricted service

New MiFID II rules

Financial advisers must choose either to be independent or restricted and can no longer switch between the two types of service, the Financial Conduct Authority (FCA) has said.

In its latest Markets in Financial Instruments Directives II (MiFID II) policy statement the regulator said it was "required" to implement the independence measure because it was a MiFID II "delegated regulation". "Delegated regulations" are EU-wide rules that are directly applicable, which means they can take effect in the UK without the need for changes to domestic laws and regulations. Firms will still be able to provide both independent and restricted advice but the FCA said individual advisers cannot change between the two statuses. This is to avoid potential consumer confusion a...