Why Should I Choose an IFA?
Choosing an IFA (Independent Financial Adviser) has its many benefits when it comes to managing and investing your money. You may want to consider locating an IFA over any other type of Financial Adviser for many reasons; many of these reasons can save you a good amount of money over time.
The main difference between an IFA and a regular Financial Adviser is that an IFA tends to offer independent financial advice to their customers. Regular Financial Advisers, many whom represent banks and insurance companies, are providing advice to their customers as per company requirements.
How Does Using an IFA Benefit Me?
Professional IFA’s are more conscious of your financial needs, and are able to concentrate more on providing a service to you instead of acting on their employers best interests. A good IFA will offer sound financial advice to their clients, while recommending more suitable financial advice based on their own research. IFA’s will also utilize the whole of the market to find the absolute best financial products to help you reach your financial goals.
Types of Financial Advisers
Independent Financial Advisers are managed by the FSA (Financial Services Authority), and therefore are obligated to meet stringent requirements in regards to competence and qualifications. Financial Advisers can be classified into three separate categories:
- Tied Advisers- This particular class of adviser works for one financial institution only.
- Multi-Tied Advisers- This class of adviser can work for one company also, but has the ability to offer select products from the market. Multi-Tied Advisers are often commission based.
- IFA’s- Independent Financial Advisers must charge a fee for their professional advice instead of earning commission from financial products.
More recently, IFA’s have been becoming increasingly popular by many because of their un-influenced financial advice. Additionally, an IFA will take the time to carefully examine their client’s financial status including their future objectives. This is commonly regarded in financial terms as “fact-finding”. Upon reviewing and advising a plan based on the clients financial position and input, advice is then given to meet the client’s financial objectives. Sometimes, an IFA will recommend an appropriate financial product to compliment the client’s requirements.
Sound, Honest Advice
IFA’s do not only cater to individuals seeking financial advice, they are also acquired by businesses also. They can easily handle all types of financial concerns such as investments, retirement planning, mortgages, insurance protection, and other loans. An IFA can also give advice pertaining to tax and financial issues when requested by a client.
IFA Qualifications
In order to legally offer financial advice, an individual must represent or be employed with a firm associated with the FSA (Financial Services Authority). The FSA enforces that certain qualifications have to be met in order for individuals to represent a firm. These qualifications are established by the Financial Services Skills Council by requirement of the FSA. Be sure to visit an IFA who is experienced and accomplished in the field, and also recognized by the FSA.