What is the difference between independent and restricted advice?
When it comes to arranging to speak to a financial adviser, you have a choice between receiving independent (whole of market) or restricted advice. These two labels were introduced by the Financial Services Authority* in December 2012, and it's important to understand what they mean before obtaining advice.
Independent financial advice
An independent financial adviser can recommend products from the whole market and from every product provider. This includes complex products, such as Venture Capital Trusts (VCTs) or Exchange Traded Funds (ETFs). If you want a vast range of options to choose from, an independent adviser could be the right choice for you.
Restricted financial advice
A restricted financial adviser can offer advice on a limited number of products and/or providers. The restriction can vary widely, with some restricted advisers limited to one, or a small number of products and/or providers, whilst others will offer a relatively wide range of products from a variety of different providers. The restriction can be in relation to the product range, provider, or both.
All financial advisers, whether independent or restricted, must be authorised by the Financial Conduct Authority (FCA) and qualified to provide financial advice. In addition, they are all subject to FCA rules and are bound by the same requirements to provide suitable advice.
We have chosen to offer Restricted Financial Advice
We constantly research the market to source the right products. We'll share this expert insight by only offering recommendations relevant to your needs and circumstances - you can be assured that they will never advise you to invest in a product that doesn't.
Independent advice may be appropriate for those investors who want to look at a much wider range of products; but from talking to our existing clients we found that they would prefer for us to be specialists in the areas where they need our help. We think it's important to be experts in these fields, and focus our expertise on the areas that are relevant to our clients.
Our in-house Technical Research Team analyse thousands of products and funds, on a regular basis, to construct a 'Preferred Product/Fund Range'. The 'Preferred Product/Fund Range' is used by your adviser when they come to assess your financial needs, so they can offer recommendations that are tailored to your circumstances.
If you want straightforward, financial advice - which is backed up by extensive research, we are the specialists that you need to speak to.
* In 2013, the Financial Services Authority was replaced with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). Financial advice is now regulated by the FCA.