Independent Financial Advice

Finance articles

Independent Financial Advice – To Guide You Through The Financial Maze

Finance has always been a difficult subject for the non-expert to understand. Many of us find our mind goes blank when confronted by a column of figures, or a load of financial terminology!

However, right now, the world of finance seems more confusing than ever. On the one hand there is an increasing and bewildering number of financial products on the market, all competing for your custom. On the other, there seems to be all sorts of turmoil in the financial climate, and most of us don’t know what will happen next or how it will affect us!

So if you have any kind of financial decision to make, you are very likely to feel the thing you need most is someone you can trust to guide you through the maze. So an Independent Financial Adviser may be exactly what you are looking for.

So why might you need independent financial advice?

  • You may be concerned about how best to provide for your retirement.
  • During the current “credit crunch”, you could be finding it difficult to get a mortgage.
  • If you have a sum of money to invest – e.g. a legacy, a bonus, the proceeds of a matured policy, etc. – you may need advice about how to make the best use of the money.
  • You may be considering taking out a life insurance policy to protect yourself and your family, and need advice as to whether it’s the right decision and if so, which policy to go for.
  • Perhaps you simply need advice as to how to be as tax efficient as possible in your overall finances.

These are just some of the reasons why you might need independent financial advice. In fact, if you need advice on any aspect of your financial situation, an adviser is there to help you.

However, if you have already started looking for financial advice, you have probably already realised that finding the right advice is more complicated than it looks. This is partly because there are actually three types of financial adviser: tied, multi-tied, and independent. The tied adviser is the one you will find in your bank and can only recommend products from that bank. The multi-tied adviser recommends products from a limited selection.

Advisers in all of these categories have to be clear about what products they can recommend. However, only the Independent Financial Adviser can recommend products from the whole of the market. So if you want to be sure of getting the advice that is most suitable for your personal needs, you are probably better going to an independent adviser.

  • An Independent Financial Adviser will look into your personal financial situation in considerable detail. He/she will also want to find out what are your hopes for the future, and what is your attitude to risk. The more complete picture the adviser can build up, the better the chance of finding the right product for you.
  • The IFA is bound by the rules and professional code of the Financial Services Authority, so is under an obligation to work in your interests.
  • When recommending a product, the adviser has to provide reasons in writing as to why he/she considers this the right one for you. You can study this before committing yourself, so you don’t get bounced into anything.
  • The adviser also has to give you the choice of whether the product is paid for via commission, or a via a fee to the adviser.


Whichever type of financial adviser you choose, you do need to spend time checking to make sure they are right for you. But remember the Independent Financial Adviser is the only one who can choose from all the products on the market – so is most likely to be able to choose the product that suits you best.

EB May 2008