What’s the difference between independent and restricted advice?
We look to financial advisers to give us the best advice, relevant to our circumstances. It is confusing that some advisers give “more advice” than others and what that actually means.
Independent Financial Advice
At 1st Financial we offer Independent Financial Advice. That means we give unbiased advice across a range of financial products from the different companies available. When a client comes to us we are legally obliged to only offer the best products and advice for their circumstances.
Restricted or Tied Agents
Companies that are not legally obliged to offer best products or services, but offer best from a limited range of products or providers are called Restricted or Tied Agents. They select the products that are most suitable to the client’s needs from that range, or do not offer an option at all.
An example of a restricted agent could be when you visit a high street bank and they offer you insurance. They are generally offering a range of products from a single provider. Where as an IFA would search across a range to find a provider that offers the most benefits.
A restricted adviser in an investment firm, can sometimes only recommend products (such as investments) that his company manages. Pay attention to the disclaimer for an investment firm, it should clearly state if they represent only one group or a panel.
The example below would be for a tied agent.
“Wallace Widgits represents Big Clock Investment Co which is authorised and regulated by the Financial Conduct Authority for the purpose of advising solely on the Group’s wealth management products and services…”
At 1st Financial we put our client needs first and are happy to explain the difference between our service and any other firms.
Matthew Eaton is an Independent Financial Adviser and has 28 years experience in the financial services sector working throughout Somerset from his base in Taunton. Matthew is a keen traveller and his favourite destination to date has been exploring South America.
