Where we are today...
Independent Financial advice is about helping people to achieve their financial objectives.
People see a financial adviser for a variety of reasons, such as:
Wanting to find out about the best saving and investment products
Gain guidance on how to prepare adequately for their retirement
To look at ways to reduce their outgoing and increase their savings.
Financial advice professionals build a trusting rapport with their clients to understand their financial needs, research the best products available in the market place that will enable their clients’ needs to be met and produce letters and reports for consideration by the client. Financial advisers have to present solutions to the client and agree a way forward. They also have to guide the client through the paperwork and processes of applications, and review any alterations where necessary.
Only Independent Financial advisers can do this - Many advisers are still in the business of selling products and not advice. This will change with the coming RDR (Retail Distribution Review).
CII Certificate in Financial Planning
CIOBS Certificate in Investment Planning
IFS School of Finance Certificate for Financial Advisers (CeFA)
SII Diploma in Wealth Management
Financial advice professionals could work for independent financial advice companies, larger investment firms, insurance firms, banks and building societies or as a self employed adviser. Financial advisers can be tied, multi-tied or independent.
If a financial adviser works for a bank or building society they often are only able to offer advice on the banks or building society’s own financial products.
If a financial adviser works for a brokerage company it may be that they advise on financial products from a range of providers. However some brokerage companies will be independent.
When a financial adviser is independent – know as an IFA – it means that they advise on financial products from the entire market, not just from one or a limited number of providers.