Why You Should Use an Independent Financial Advisor

Feb 28

Why You Should Use an Independent Financial Advisor

If you’re in need of financial advice, you should always make sure to go to an independent financial advisor.

Independent financial advisors (IFAs) are unbiased and can give you advice on, or sell, products from any provider. This means that they are able to provide you with the best advice from across the board, and required by the FSA to do so.

The Cost of Independent Financial Advice

Because IFAs are bound by the Financial Services Authority they are required to be transparent about their pricing. The cost of financial advice will depend on which IFA you go to but transparency regulations means that now IFAs are required to give you  a cost breakdown before you obtain advice.

Before December 2012, it was the case that IFAs could work on commission and weren’t required to notify consumers when they were doing so. However since then there have been new regulations which require IFAs to declare when they are working on commission and offer consumers a choice as to whether to pay a fee instead.

Independent Financial Advice for Individuals

It’s quite common for an individual to seek out financial advice when considering making an investment, buying a financial product or making long term financial provisions – such as purchasing life insurance.

Sometimes it’s the case that you may not require financial advice. Some financial choices can be made quite easily without the need for an advisor, and some people find that their finances are simply not complicated enough to warrant the extra expenditure. However with the amount of financial products available on the market – over 30,000 according to the Guardian – it may be that you simply require some guidance to find the best product to suit your needs. In this case, an IFA is a great choice.

Independent Financial Advice for Businesses

Many business owners have a financial advisor who they go to regularly, and whom often will be their bank manager or accountant. But some business owners like to use the services of a professional IFA and this choice can often be determined by level of service, particularly at a time when good customer service is being sacrificed to competitiveness on price.

Normally, the services of an IFA would only be employed by an individual, as an IFA will tend to advise more on wealth management rather than business accounting. However for a small business owner an IFA may prove more reliable and trustworthy than a bank manager, and many small business owners like to be able to get their financial advice from one competent source.

The Benefits of Independent Financial Advice

Ultimately, employing the services of an IFA should only improve your financial situation, which is why so many see it as a worthwhile investment. IFA services from providers such as Your Wealth come with a wealth of guarantees and cover a wide range of financial topics, from wealth management to pensions and mortgages. And because all IFAs are regulated by the FSA, you know you’ll be given financial advice which you can trust.