What are Independent Financial Advisors?

IFAs are qualified individuals who provide investors with unbiased financial advice and. are authorised and regulated by the Financial Services Authority (FSA). An IFA will need to complete a fact find to ensure that the advice given matches the need . The tasks that are associated with the IFA are related to investing, retirement planning, mortgages, tax and occasionally legal advice. IFAs are generally associated with high net worth individuals.

There are 2 main types of IFA:

1. Advisors who are authorised to give advice and who will charge a Fee or take initial and annual commission.

2. Discount Execution only brokers who do not charge a fee and usually discount all or most of the initial commission but offer no advice.

Top Tips:

  1. Ensure your IFA can offer products from the ‘whole of market’ and not just a few providers.
  2. Make sure that you understand the charging and commission structure and how and when these payments are made.
  3. IFA’s can charge a fee, earn commission or both, find out how they are to be remunerated.
  4. IFAs must offer to work for a fee so make sure you ask about this prior to taking their advice if this is your preferred route.
  5. If you use a discount broker shop around for the best deal.
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