Independent Financial Advisors

Independent Financial Advisors (IFAs) are specialists who have profound knowledge in matters of finance. They advise customers on the best ways to manage their money. They are authorized to recommend and advise on suitable financial products and commodities from the entire market. These may include ideal investments options and suitable pension products. They are called Independent Financial Advisers because they work independently for individual clients as opposed to representing entire companies like banks or insurance companies. Specialists who hold the title ‘Independent Financial Advisor’ are more commonly found in the UK. The Financial Conduct Authority (FCA) is the regulatory body for Independent Financial Advisors in the UK.

An Independent Financial Advisor has the core duty to conduct research of the whole market. For one to benefit from their services, you are required to pay a flat fee for their services.

They conduct risk analyses for you and design financial strategies which are tailor made to suit clients’ specifications.

As with the requirements of all professionals, Independent Financial Advisors are supposed to act in an ethical manner.

 

Image Courtesy – financeplaza.org

Image Courtesy – financeplaza.org

Factors to Considering When Choosing an Independent Financial Advisor

Type of Advice You Are Looking For

You should be able to establish whether you need specific advice such as on retirement savings or whether you need advice that covers all your individual financial aspects. This will enable you to choose an IFA that has vast experience in your area of need.

Experience of the IFA

You should also consider the level of experience that the IFA has, specifically in your area of interest. A more experienced IFA will be better placed to advise you.

Other Clients of the IFA

You should take a look at the other clients that the IFA has and try to gauge whether they have identical concerns as yourself. This enables you to affirm the IFAs competency and capabilities in the particular financial aspect that you are all seeking help on.

Type of Products That They Recommend

When choosing an IFA look at the products that they recommend. Establish whether they represent the whole market or just segments of it. Moreover, analyze the product and service providers and ascertain if the products are tied to a single or a number of providers.

Personal Budget and the Fee Structure

When choosing an IFA you have to be cognizant of the fact that they will impose charges. You have to match the IFAs charges and your budget so as to ascertain as to whether you can afford to pay for their services.

Registration Status

All IFAs in the United Kingdom are registered under the Financial Conduct Authority (FCA). You should check their registration status before enlisting for their services. This will enable you to avoid advice from quacks and IFAs who are not legitimate. It may also help you avoid being fleeced by unscrupulous IFAs.

In conclusion, Independent Financial Advisors will always seek to provide timely financial advice that is in your better interest.

If you are seeking in-depth financial advice on diverse financial matters, you should consider employing the services of an Independent Financial Advisor.

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