Primary responsibility to act in the best interest of their client at all the times
|By: mich steve | May 11 2013 | 407 words | 1016 hits|
There are several types of the financial advisers throughout UK and, if you are currently looking for the financial advice, it is really crucial to you that you understand the main differences between them in a proper manner. Just as not all the medical professionals are the same - there are paramedics, auxiliary nurses, nurses, GPs, registrars and consultants, for example - neither are all financial advisers the same!
Types of Financial Advisers
There are three main categories of financial advisers:
1. Tied advisers, usually work for a bank or an insurance company for a long time. They are only authorized to advise you on their own company's products;
2. Multi-tied advisers, who are particularly able to offer advice from a limited set panel of the companies;
3. Independent financial advisers (IFAs) who will offer you the unbiased advice from the whole of the market.
The Importance of Independent Financial Advice IFAs differ from tied and multi-tied advisers, not only because they offer whole of the market advice, but also because they do not represent a company - they act as the representative of their client, and it is their primary responsibility to act in the best interest of their client at all the times. IFAs must also very effectively offer the clients the option to pay by the fee, rather than commission from the product provider. Most of the proper solicitor edinburgh are the IFAs.
Once an IFA has carried out a totally detailed fact find with you, so that he (or she) can fully understand your current financial situation, as well as your financial needs and the objectives, he will go away and do some research to find out the most suitable financial products for you. He will then present his recommendations to you at a follow-up meeting.
Minimum qualifications: All solicitor edinburgh giving the investment advice must have the minimum qualifications of the Certificate in the Financial Planning or its predecessor the Financial Planning Certificate from the Chartered Institute of Insurance , or the Certificate for Financial Advisers (from the IFS School of Finance.
Higher qualifications: By the end of the year 2012, the advisers who wish to continue to give the investment advice must have achieved the higher qualifications - either the Diploma in solicitor edinburgh from the CII, or the Diploma for Financial Advisers (Dip FA) from the IFS. Roughly one third of all financial advisers in the UK are currently qualified to this level already. The others are studying hard!
Mich Steve is the author of these articles. For further details about solicitor edinburgh
please visit the website.