What Is an Independent Financial Adviser?

For most people, there will be times in their lives where they are unsure as to what to do with their money or what the best options available are when it comes to their financial futures. It is at this point that seeking help from a financial adviser could be the best way forwards.

However, very few people know that there are actually two different types of financial advice that can be received. This lack of knowledge often results in clients not benefiting from the widest range of advice and products.

So, what is the difference and what does it mean for you as a client?

The Two Types of Financial Advice

The job of all advisers is to look at your personal circumstances and life plans and then help find products and solutions that best meet your goals. There are two different types of adviser that can do this:

Independent Financial Advisers (IFAs)

These advisers will give unbiased, whole of market advice from the full range of products and providers available. This means that they will always look for the most suitable product to suit your needs with no restrictions on who they can use or what products are available to them.

Restricted Advisers

These advisers can only offer advice via a limited range of products or from a limited range of companies. Restricted advice narrows the range a client can be recommended from, which means a product outside that range cannot be recommended even where it might otherwise have suited them.

So, What Advice is Best?

The main practical difference is choice. An Independent Financial Adviser (IFA) can consider the whole of the market, whereas a restricted adviser selects from a narrower range. Which suits you best will depend on your own circumstances, but it is always worth knowing which type of adviser you are speaking to before you take advice.

Therefore, if you are looking for any financial help in the future, please always consider who it is that you are seeking the advice from. A fully independent financial advice firm such as ours would be happy to arrange an initial consultation to discuss your plans and options in further detail if you feel it would be of benefit to you.

Important: This article is for information only. Different types of financial adviser have different permissions and scope. Choosing the right adviser for your situation is important. We recommend seeking advice from advisers authorised and regulated by the Financial Conduct Authority (FCA). If choosing an adviser, you may want to ask them about their permissions and the scope of products they can recommend.

For a confidential discussion about your financial planning, please contact us.