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Last Updated: Sep 2009
Last Updated: Sep 2009
Typically an Independent Financial Adviser will conduct a detailed survey of their client's financial position, preferences and objectives; this is sometimes known as a 'factfind'. They will then advise appropriate action to meet the client's objectives; and if necessary recommend a suitable financial product to match the client's needs.
Individuals and businesses consult IFAs on many matters including investment, retirement planning, insurance and mortgages (or other loans). IFAs also advise on some tax and legal matters.
Individuals and businesses consult IFAs on many matters including investment, retirement planning, insurance and mortgages (or other loans). IFAs also advise on some tax and legal matters.
Independent Financial Advisors or IFAs are professionals who offer unbiased advice on financial matters to their clients and recommend suitable financial products from the whole of the market.
The term "Independent Financial Advisor" was coined to describe the advisers working independently for their clients rather than representing an insurance company. At the time (1988) the UK government was introducing the polarisation regime which forced advisers to either be tied to a single insurer or to be an independent practitioner. The term is commonly used in the United Kingdom where IFAs are regulated by the Financial Services Authority (FSA) and must meet strict qualification and competence requirements.
In the UK the industry has been de-polarised since 2005. There are now four main classes of adviser: tied advisors (working for one financial institution), multi-tied advisors (paid by more than one financial institution), whole of market advisers (working with all companies but only on a commission basis) and independent financial advisers. Independent financial advisers must offer their clients the option to pay for advice by fee rather than commission.
The term "Independent Financial Advisor" was coined to describe the advisers working independently for their clients rather than representing an insurance company. At the time (1988) the UK government was introducing the polarisation regime which forced advisers to either be tied to a single insurer or to be an independent practitioner. The term is commonly used in the United Kingdom where IFAs are regulated by the Financial Services Authority (FSA) and must meet strict qualification and competence requirements.
In the UK the industry has been de-polarised since 2005. There are now four main classes of adviser: tied advisors (working for one financial institution), multi-tied advisors (paid by more than one financial institution), whole of market advisers (working with all companies but only on a commission basis) and independent financial advisers. Independent financial advisers must offer their clients the option to pay for advice by fee rather than commission.
