Types of Adviser
From 31 December 2012, following changes to UK financial services legislation and as required by the Financial Services Authority (FSA), financial advisers will offer either ‘independent’ or ‘restricted’ advice.
As defined by the FSA “advisers that provide ‘independent’ advice will be able to consider all types of retail investment products which could meet your needs and objectives.”
At Wessex Investment Management we will continue as Independent Financial Advisers and offer unbiased advice selecting products from the marketplace as a whole, providing impartial advice and recommending the most suitable combination of products from all providers, free of commercial ties and/or commercial restraints.
A ‘restricted’ adviser can only recommend certain products, product providers, or both. This means they might only offer products from one company, or just one type of product.
An adviser will offer restricted advice where they work with or for a product provider and only offer advice on the products that company offers.
Restricted advisers can also choose to focus on a particular market. This might be something like pensions or ethical investments, meaning the adviser will be able to recommend products from all providers that operate in this market.
Restricted firms will not be allowed to use ‘independent’ to describe the advice they offer. It should be made clear to you if you are receiving restricted advice and what that means in practice.
At Wessex Investment Management we will take time to understand your needs in order to prepare tailored solutions specific to you and provide choice.
Types of Advice
There are two distinct levels to financial advice. These are:
- Full Advice – Where clients/investors prefer to have all aspects of their financial affairs cared for by a professional financial planner. Regular reviews are undertaken and a financial planning strategy is closely followed.
- Focused Advice – Those clients that have in the main looked after their own affairs but recognise shortcomings in a particular financial planning area will often refer to a professional financial planner for specific advice on products and/or companies without undergoing a full and long-term review process.
Young or old, we all make financial decisions. By making the right ones we can gain significantly. Making the wrong ones can prove very expensive, not just for us individually, but also for those who depend upon us.
If the business of financial planning seems too complicated or you are too busy to take the DIY approach then an Independent Financial Adviser (IFA) can provide guidance through the maze of the financial world. Only an IFA can provide unbiased impartial advice and make recommendations from the whole of the market.