The Financial Services Authority has written a guide for consumers on how the RDR will change financial advice.

The guide, entitled ‘Changes to the way you get financial advice’, describes the changes, what is advice and what the benefits of the changes are.

It promises clearer charges, clearer services and more professional advice for consumers. This will mean increased confidence and trust in advisers, higher levels of technical expertise and the knowledge of knowing exactly what consumers are paying for.

On the topic of independent versus restricted advice, the FSA says: “From 31 December 2012, if your adviser says they are independent, this will mean they are able to advise you on all types of products that you could invest in. If not, this means that they will be offering ‘restricted’ advice.

“Restricted advisers will either specialise in specific areas such as pensions or offer limited advice on a smaller range of products. Your adviser will explain to you what they can advise on.”

It tells consumers that fees can be paid upfront or taken from their investment and suggests they enquire with their adviser about what they plan to do next year once the RDR is implemented.

It also gives consumers a checklist of the four points an adviser will need to have.

“Every financial adviser will subscribe to the Financial Services Authority code of practice, hold a higher standard qualification for giving financial advice, spend at least 35 hours a year learning as part of continuing professional development requirements and hold a Statement of Professional Standing as evidence they are meeting the standards, issued by an accredited body.”