Restricted vs Independent Advice – Myths, Facts and the Questions You Should Ask

Why this is in the news

Quilter’s decision to move fully to a restricted advice model in 2026 has prompted a lot of debate. Most Quilter advisers, including us at Ginkgo, are already classed as restricted and open about it. The change affects only a handful of independent firms Quilter has acquired in recent years.

It’s important to understand that being restricted is not the same as being a tied‑agent. We are restricted by the platform we use — not by the investments we can recommend. The investment solutions we recommend are selected by Quilter’s investment managers, who review the whole of the market and make their selections on our behalf. We do not simply recommend Quilter‑branded products.

1. How choice really works

Both restricted and independent advisers can give access to whole‑of‑market investments. In our case, Quilter’s investment managers carry out the selection process on our behalf. The FCA recognises this type of structured, research‑driven process as standard good practice¹.

2. Governance and oversight

One advantage of a large restricted network is the specialist teams behind the scenes. Quilter’s research analysts, compliance specialists, and governance experts ensure the investment process remains thorough and consistent².

3. Why firm size matters

The FCA’s data shows a slow decline in adviser numbers, largely due to rising compliance costs³. Larger firms — whatever their label — are often better placed to handle those pressures. That matters for you, because it supports continuity of service.

4. FSCS protection and the “gap”

The FSCS protects up to £85,000 per person, per firm if a regulated business fails. If your loss is greater, you can’t claim the excess back.

• £85,000 — FSCS compensation limit
• £1 billion — estimated losses above the cap between 2016–22⁴
• £2 million — amount applied to above‑cap claims from £54 million recovered in 2023/24⁴

The bigger and more financially robust the firm, the less likely it is you’ll ever need to rely on this safety net.

5. The questions to ask your adviser

• How are investment solutions chosen for me?
• Who checks and reviews them?
• How financially resilient is your firm?
• What protection would I have if my investments lost value due to firm failure?

The bottom line

Whether an adviser is independent or restricted tells you less than you might think. What matters is:

• A robust, transparent investment process
• Strong governance and oversight
• A financially secure firm backing your adviser

This article is for general information only. It isn’t a recommendation or a request for you to take any action.

By Daren Wallbank, Chartered Financial Planner

¹ FCA Thematic Review: Assessing Suitability, 2017
² Quilter Annual Report 2024 – Governance Overview
³ FCA Retail Intermediary Market Data 2023
⁴ FSCS Annual Report 2023/24 and “Balancing Act”