What’s The Difference Between an IFA & Restricted Financial Advice?

What’s The Difference Between an IFA & Restricted Financial Advice?

What’s The Difference Between an IFA & Restricted Financial Advice?

Sometimes in life we all need to take financial advice, but where do you turn, who do you speak to and what should you include in your conversation so that you get the best solution out of it?

There are two types of financial advisers that can help, these are restricted and independent, but what is the difference and how will that affect you:

Restricted Financial Advice:

  • Cannot advertise themselves as independent as they are usually tied to a specific set of financial solutions that they offer to their clients.  
  • They may only focus on one product such as pensions or investments and this could mean that although they are very knowledgeable in their subject matters it could mean the wrong financial advice for other aspects of the advice your looking for.  
  • They may only work with one provider which almost restricts you to just one solution. Although this may be the perfect fit for some we find a one fix for all generally does not work. 
  • They could access products from some but not all providers. If your looking for the best deals that are tailor made to your needs this could end up costing you thousands of pounds over the years and could become a rather costly mistake.  

Independent Financial Adviser:

  • Can advertise as independent or IFA (Independent Financial Adviser) although many will favour the products they know best as they will know them fluently. 
  • An IFA is able to access the whole of the financial markets to research the best solutions for your exact needs.  
  • They will be able to offer you and your loved ones a bespoke financial plan that works for your exact short and long term objectives rather than an off the shelf package that may not be as good.  
  • An IFA will generally be able to switch your investment positions when, where and if it is needed based on your needs. 
  • An IFA will provide you with unbiased advice that is generally aimed at your financial plans and therefore may be the best solution for you.  

NB – There are many variables to offering bespoke financial advice so the above is just some generic assumptions based on the wider market.

When you are ready and want to speak to a financial adviser make sure you ask the questions that will enable you to assess whether you and your adviser are a good fit.  We wanted to give you a head start and have listed a few basic questions below that may help you on your quest to get great financial advice –

  • What do you charge for your financial advice and are there any hidden fees?
  • What financial services do you offer and how will they help me? 
  • If you are not independent can you access products across the financial markets to give me the best information and advice possible?
  • What financial qualifications do you have and how will they affect me?    
  • How long have you been in financial services and advising clients for?  
  • Will you provide ongoing financial advice to me and if so will it cost me more?

If you want to discuss your financial plans and objectives with a professional financial advice company why not get in touch with a friendly and local IFA that has your interests at heart directly on 01483 654135 or drop me an email direct to leon.alden@2plan.com, I will always be happy to help.