In his own words: Stephen Gay on AIFA changes

The Association of Independent Financial Advisers (AIFA) is to extend membership rights beyond IFAs as it adapts to upcoming regulatory changes.

The trade body will accept 'restricted' advisers as members, but not single-tied intermediaries, it said.

The move will enable firms to continue to be eligible as members "despite the rule changes placed upon their businesses".

Under the changes to be implemented in January 2013, the FSA has expanded the range of products 'independent' advisers will be expected to know to include structured investment products, all investment trusts and
unregulated collective investment schemes.

Restricted advisers will be those offering advice on a limited range of products or providers.

Stephen Gay on:

Accepting non-independent advisers: "This was the right thing to do on a moral, political and economic basis. We could not in all consciousness exclude previously-loyal members simply because the FSA has changed the goalposts on independence."

Representation: "We will be accepting restricted advisers as members. The question is: how far into the restricted space will we go? Policymakers want to be able to go to an organisation which represents a broad faction of the community. The danger is, if you go too wide, policies can become diluted."

Influence: "Non-independent offerings dominate in Europe. If we are not careful, we will represent the faction of the advisory community which is only prevalent in one of 27 countries. Wielding influence means you have to be relevant to the policymakers who you are seeking to influence."

More on restricted advisers: "Do I think there are a large number of multi-ties who will suddenly rush to join AIFA? No I do not."

AIFA support: "This process has not been a case of me or anyone else twisting people's arms into accepting restricted advisers. The board is behind this. The consensus was overwhelming, but that's not to say we have done this without reservations."

Grey areas: "There is an identifiable grey area: multi-single ties. By that I mean firms tied to one provider for pensions, another for protection, and so on. But that does not represent consumer choice and they will not be members."