SIFA, a body aimed at promoting collaboration between solicitors and independent financial advisers, has clarified its membership eligibility rules to reflect changes to the definition of IFA.
SIFA said it will be welcoming membership applications from ‘restricted whole of market' advisers and, in order to avoid confusion, will change the wording on its logo from ‘Solicitors Independent Financial Advice' to ‘Supporting Impartial Financial Advice'.
It said it had always insisted only IFAs be eligible for membership but that, due to changes to the definition of independent advice following the Retail Distribution Review (RDR), it would alter its membership criteria.
"The Financial Services Authority has re-defined the word ‘independent' in such a way as to place greater emphasis on the scope of the service offered than on impartiality, with the result that some firms which are independent in the dictionary sense of the word of being free from the influence of third parties will be denied independent status in the eyes of the Financial Services Authority," SIFA said in a statement.
"Freedom from third party influence is the essence of independence... and this will continue to be the basis for determining eligibility for SIFA membership."
SIFA added it "warmly welcomes" the Law Society's rebuttal of a decision by the Solicitors Regulation Authority last year to permit referrals from solicitors to non-independent advisers.
