What is Independent Financial Advice?
There are two different types of financial advisors – ‘independent’ and ‘restricted’ – and this can affect the advice you are given. When you get advice about investing your money, you need to know which sort of advice you are receiving.
As independent financial advisors, Allotts Financial Services can;
- provide independent advice and consider and recommend all types of retail investment products that could meet your needs and objectives.
- consider products from all firms across the market, and have to give unbiased and unrestricted advice.
A restricted advisor or firm can only recommend certain products, product providers, or both. Restricted advisors and firms cannot describe the advice they offer as 'independent'.
Key differences between independent and restricted advice:
|Independent Advice||Restricted Advice|
|Considers all retail investment products||Yes||No|
|Focuses on a particular market||No||Yes|
|Considers products only from certain providers||No||Yes|
|Has to explain to you the type of advice they offer||Yes||Yes|
|Can use ‘independent’ to describe the advice they offer||Yes||No|
|Incentivised to recommend one product over another||No||No|