The UK’s Financial Conduct Authority (FCA) has warned firms on adopting ‘whole of market restricted’ as an advice label and advised them not to go there.

The British financial regulator defined advice as either independent or restricted.

Responding to a question from on the issue, FCA technical specialist Rory Percival was quoted by as saying, "If you for example specialise in pensions you might say we specialise in pensions and hence our advisers are restricted to retirement planning, but within the pensions field we select from the whole of the market."

"But introducing a third category, we are restricted whole of market, is a client going to understand what that means? You have not explained the nature of your restriction," Percival added.

"Does the market understand the difference between independent and restricted? Very probably not, but that is probably not surprising given it is a new change," Percival concluded.