Restricted label will bring clarity - SJP

St James’s Place (SJP) has welcomed the ‘restricted advice’ definition proposed in the RDR.

Chief executive David Bellamy says the proposals to divide advice streams into ‘restricted' and ‘independent' will bring much-needed clarity to consumers.

Publishing its 2009 results today, SJP said it is 'embracing' the RDR, and plans to invest £2m this year to help its partnership achieve higher qualifications standards.

It also says the new ‘restricted advice' label, which it is likely to fall under, will be more useful than the current ‘tied advice' distribution type.

Bellamy says: "We like the restricted label as it leaves us free to describe the kind of service we provide, so long as the client is aware it is restricted.

"I think this will create a more level playing field for tied advice firms in the way we present ourselves to clients."

Bellamy also believes a number of firms that currently describe themselves as independent advisers will be forced to operate under the restricted label after 2012.

SJP says it will use its existing training facilities to increase professionalism in the run up to RDR, with £2m of investment in training this year.

Bellamy says the overall costs of increased professionalism will become clear later this year, once the firm can assess how quickly its advisers are progressing towards the required standard.