Independent Financial Advisors
UK IFAs & advice
The number of financial products that are available at the moment can be completely overwhelming to anyone, and can sometimes lead people to buying products that are not right for them and leaving them in a worse situation than they were before they bought the product. The news at the moment is certainly pushing for people to start thinking ahead with savings, especially in this economic climate. This is where a financial adviser will be the right person to speak to.
Whether it is just to discuss retirement, advice on investing in the future, life insurance protection for your family or mortgage advice, there will be a product that is suitable for it; it is just a case of finding it, and that is where an independent financial adviser will step in. An independent financial adviser will be able to give you sound, unbiased advice on financial products that are available to you.
Tied agents and independent financial advisors
To advice on financial products such as pensions, collective investments (child trust funds, unit trusts and individual savings accounts) and life insurance, you can either go through a tied or multi-tied agent or an independent financial adviser. A tied agent can only provide you with advice on the products from the provider they are contracted with, whereas a multi-tied agent can recommend products from a variety of providers but only a specific few (maybe even just one) and is called a financial adviser.
An independent financial adviser will provide a client with financial advice which is impartial and recommend to the client the most suitable financial product for their individual needs, after researching the market for the perfect one. An independent financial adviser will act on your behalf and will give you the option of paying a set fee or paying by commission.
Advantages of IFAs
The main advantage of hiring an independent financial adviser is that you have full access to all financial products available in the market, through a qualified financial adviser researching into it for you. An independent financial adviser is specifically hired to research and give recommendations on the most appropriate financial products after speaking to the client and working out their needs and requirements, as well as their goals financially and any risks that need to be addressed.
Independent financial advisers are regulated by the Financial Services Authority (FSA), which will ensure that they stick to the code of practices laid down by the FSA. They have a duty to give reasons for their recommendations and will be required to put these reasons in writing for the client to have just in case something goes wrong.
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