Around three quarters of IFAs plan to stay independent despite a tougher stance from the regulator on the definition of independent advice, according to an industry survey.
Financial services consultancy Harrison Spence Partnership's IFA View Survey found 15% of IFAs intend to become restricted in the next year, while a further 5% will become restricted within the next year and 6% within three years.
The figures fly in the face of widely held expectations that there would be a rush to become restricted among IFAs post-Retail Distribution Review (RDR) to avoid the extra requirements necessary to remain independent, such as the need to be prepared to advise on unregualted collective investment schemes.
However while managing partner Brian Spence called the result "laudable", he suggested many IFAs will be forced to give up their independence in order to stay profitable.
"Deciding how to retain independence profitably will require real thought and many have yet to fully explore their options," he claimed.
The survey found 62% of IFAs have continued on a business as usual basis post-RDR, and avoided segmenting their clients.
Of the remaining group, 16% reported they have found alternate ways to keep serving lower-value clients while 22% said they have turned lower value clients away.
Spence said segmentation should be an "essential" part of an advice firm's strategy so it can focus on those clients "that are most valuable".
On the other hand, "lighter-touch offerings" will be essential for protecting profitability for lower-value clients, he suggested.
He added: "Arriving at a model where clients of all sizes can be serviced at the appropriate level will be a challenge well worth surmounting."
Harrison Spence's survey was carried out in the week before Easter and received around 100 responses from IFAs.
The FCA found in its second post-RDR review of advice firms out in March that most IFAs were complying with its independence rules.
