The AIC today launched a new service to help advisers cope with new rules which will determine which pooled investments they can recommend to ordinary retail clients.
Under the Retail Distribution Review (RDR), independent advisers are required to consider all pooled investments which might be suitable for their clients. However, under new rules which came into force on 1 January 2014, financial advisers cannot recommend any of these which are identified as ‘non mainstream pooled investments’ as defined by the Financial Conduct Authority (FCA).
The Association of Investment Companies (AIC) is concerned that the rules are difficult for advisers to understand and has therefore launched a new service to help them with their due diligence. The service will provide advisers with a list of all the securities that the AIC’s members have confirmed can be recommended to ordinary retail investors under the new rules.
The list is available from the AIC financial adviser centre at http://www.theaic.co.uk/financial-advisers/.
Ian Sayers, Director General of the Association of Investment Companies, said:
“The new rules determining which pooled investments a financial adviser can recommend to ordinary retail investors are complex. Advisers will need to take care in future to ensure that they understand which open-ended funds, ETFs or investment companies they can recommend.
“The service we are launching today will help to simplify the process for advisers considering investment companies for their clients and we believe it will become an invaluable tool for advisers looking to meet the requirements of the new rules.”