What is an independent financial adviser?

An independent financial adviser (IFA) is a qualified professional authorised to provide financial advice to individuals and businesses.

How are independent financial advisers different?

If you go into your bank or building society for financial advice you will almost certainly be dealing with a ‘tied financial adviser’. What this means is that they can only recommend financial products to you which are provided by the organisation they work for. It’s also worth remembering that advisers who work for banks usually have specific sales targets to meet, so the advice they give you may not be based on your own best interests, but on their monthly or annual targets.

Recent times have seen the creation of what is known as a ‘multi-tied adviser’ in some banks. Like tied advisers they are limited in the range of products they can search and recommend, but they do also have access to those products offered by a select number of different firms.

In comparison, an independent financial adviser has total freedom to research all relevant financial products on the market on your behalf, and then recommend those that they think offer the best value for your financial situation and circumstances. As the name suggests, IFA’s are entirely independent and unrestricted, so they are able to offer you financial advice that is unbiased and totally impartial.

Independent financial advisers have to be authorised and regulated by the Financial Services Authority (FSA).

Professional independent advice

Howard Financial Services are authorised independent financial advisers, and can provide you with impartial financial advice on a wide range of matters. For more details, please continue to browse our website or contact us direct.