Is it better to use an independent or restricted financial adviser?
At the heart of the financial advice market lies the Independent Financial Adviser.
The easiest way to describe an Independent Adviser is to state that they are unrestricted in how they can advise you and any adviser that is not independent will be restricted in some form or another.
The current regulatory environment has provided a distinct line between advisers that are Independent and those that are Restricted. Using the definition and explanation provided by the Regulator:
The Independent Adviser will provide independent advice and is able to consider and recommend all types of retail investment products that could meet your needs and objectives.
Independent advisers will also consider products from all firms across the market, and have to give unbiased and unrestricted advice.
A restricted adviser or firm can only recommend certain products or product providers. They may even only be able to sell their own products.
- The adviser or firm has to clearly explain the nature of the restriction. If you are not sure you should ask for further information, but some examples of restricted advice are where:
- The adviser works with one product provider and only considers products that company offers.
- The adviser considers products from several – but not all – product providers.
- The adviser can recommend one or some types of products, but not all retail investment products.
Restricted advisers and firms cannot describe the advice they offer as ‘independent’. With independent advisers they have none of these restrictions.
All advisers have to make it very clear to you what status they have.
Hartey wealth management are fully independent award winning financial advisers who can recommend anything across the whole of the market. We work for our clients, not the fund companies. If you’d like to speak to us about your financial requirements, please do not hesitate to get in touch.