Research house NMG Consulting, which surveyed almost 400 UK advisers between January and March for its Financial Adviser Census, said 10% of advisers who had previously been independent say they are now offering restricted advice.
The majority (90%) of those questioned said they still consider themselves independent, but many said they are shifting their business model, with 15% saying they will offer restricted advice in 12 months time.
NMG Consulting had previously forecast that up to 60% of the UK advice market will be restricted by 2016 and David Burns, director of NMG, said this research backs up this prediction.
“We expect this shift to be gradual as adviser firms come to accept that their current model is restricted by default. In addition, we anticipate that over time advisers will recognise that there are costs and risks associated with supporting the wider definition of whole of market, yet few of their clients require access to the broader product range.”