Independent Financial Advice
There are a number of different sources from which you can obtain financial advice. Firstly of course there are the life insurance companies who, if they do offer any advice, can only offer advice on their own products. This doesn't give you much of a comparison with what is available in the whole of the market. The same is true of most of the banks and building societies who in the main only offer narrow advice. It's not always clear whether the advice that you are being offered is truly independent
An Independent Financial Adviser (IFA) is the only type of adviser that is able to select from all the products available in the marketplace - making sure you get the right product for your individual needs. IFAs are bound to the Financial Services Authority rules which obliges them to provide advice most suited to your personal requirements and your risk outlook. When financial products are recommended they must take into account the benefits provided, charges, flexibility, service and financial strength.
All IFAs must be authorised and regulated by the Financial Services Authority and are obliged to offer what is termed 'suitable advice'. This means that they have to gain a full understanding of your circumstances and requirements before helping to choose any financial products (they will record your information so you can double-check that they really have understood).
The advice an IFA gives is impartial and is not swayed by anything other than what is suitable for you. There are however some misconceptions about how the advice that we offer is given and the people for whom independent financial advice is suitable. Below are some frequently asked questions
· Is it expensive?
Consumers have the choice of paying a fee for advice given, normally agreed in advance or in some circumstances we can be paid by the product providers and cannot favour one provider over another on remuneration grounds. We must provide impartial advice for you at all times.
· Will I pay more than going direct to a product provider?
Your plan charges will be exactly the same whether you deal direct or via us, the problem is knowing which provider to go to in the first place, in order to find the best product for you at the best price.
· Is it only for the wealthy?
We deal with people from all walks of life who earn all levels of income. The advice that we offer is as carefully thought out and selected whether regardless of income and circumstances.
· Do I have any protection?
All IFA’s are regulated by the FSA (Financial Services Authority). You are also protected by the provisions of the Financial Services Act. IFA’s will also have professional indemnity insurance to protect you and are registered under the Consumer Credit Act and Data Protection Act and hold the appropriate licences.