At the risk of sounding facetious, an independent financial adviser is someone who gives independent suggestions about financial matters. Actually, stating the rather obvious in this manner put an important pressure on the three vital the different parts of the independent financial adviser's role.
Independent
The independence of the adviser is crucial. When an independent financial adviser is consulted, you should know that he or she has no vested interest and can not be influenced in any way by selling a single company's products. Independence implies that the client can get the adviser to act completely impartially, entirely in the client's needs, and not since there is a recognised dependent relationship between the adviser and something particular supplier. The importance of this independence can't be stressed enough. The adviser should be licensed by and is regulated by the Financial Services Authority, and independence is something that is central to such recognition. The client's faith and trust in the adviser stems largely from the latter's independence.
Financial
An unbiased financial adviser will need expert professional understanding of a huge selection of financial products and services. Because it has probably the most highly developed financial services industries in the world, the sheer selection of products available on the British market means that knowledge and professionalism must be of the highest order.
As a result of sheer range of subjects with which an unbiased financial adviser must be familiar, there is a correspondingly wide range of qualifications open to individual advisers. For example, the adviser may have professional qualifications awarded by the Chartered Financial Analysts (CFA) Institute, the Chartered Insurance Institute (CII), the Institute of Financial Planning (IFP), the non-public Finance Society (PFS), the Pensions Management Institute (PMI, the Securities and Investment Institute (SII), or others. Above all, however, the adviser knows that his is a constantly changing market, with services and services emerging all the time. He or she will make it his / her business to remain completely abreast of these trends.
Adviser
As an adviser, the third and vital element of the independent financial adviser's role harks back to the first of their qualities, independence. The financial advice given should be "best advice" when recommending any product or service. In other words, the advice must be the advice that's genuinely in the client's best interest. It is as if the adviser had stepped in to the client's shoes and was giving advice entirely from the client's perspective. In this manner, the client can be assured that the advice is truly independent, objective and impartial advice which will satisfy the interests that your client himself or herself has identified.
https://money.com is surprising just how much meaning could be packed in to the three words that describe the role of the independent financial adviser. But as the above brief, thumb-nail sketchy shows, each one of the three words encapsulates a simple and vital part of this professional's job. Each word describes the obligations that the adviser has towards all of his clients, so that the clients, for his or her part, can rest absolutely assured they receive genuinely independent, well-informed and expert financial advice that will aid their own needs.