At the chance of sounding facetious, an independent financial adviser is a person who gives independent suggestions about financial matters. Actually, stating the rather obvious in this manner put an important pressure on the three vital components of the independent financial adviser's role.
Independent
The independence of the adviser is critical. When an independent financial adviser is consulted, you should know that she or he has no vested interest and can not be influenced in any way by selling a single company's products. Independence means that the client can expect the adviser to do something completely impartially, entirely in the client's best interests, and not since there is an established dependent relationship between the adviser and something particular supplier. The significance of this independence cannot be stressed enough. The adviser has to be licensed by and is regulated by the Financial Services Authority, and independence is something that is central to such recognition. https://money.com and trust in the adviser stems largely from the latter's independence.
Financial
An independent financial adviser will need expert professional knowledge of a huge range of financial loans and services. Because it has just about the most highly developed financial services industries on the planet, the sheer range of products available on the British market implies that knowledge and professionalism should be of the best order.
Due to the sheer range of subjects with which an independent financial adviser must be familiar, there is a correspondingly wide variety of qualifications available to individual advisers. For instance, 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 at all times. He or she will make it their business to stay completely abreast of these trends.
Adviser
As an adviser, the third and vital component of the independent financial adviser's role harks back again to the first of his or her qualities, independence. The financial advice given must be "best advice" when recommending any service or product. That is to say, the advice must be the advice that is genuinely in the client's best interest. It really is as though the adviser had stepped into the client's shoes and was giving advice entirely from the client's perspective. In this way, the client can be assured that the advice is actually independent, objective and impartial advice that will satisfy the interests that the client himself or herself has identified.
Summary
It is surprising the amount of meaning could be packed into the three words that describe the role of the independent financial adviser. But as the above brief, thumb-nail sketchy has shown, each of the three words encapsulates a fundamental and vital part of this professional's job. Each word describes the obligations that the adviser has towards each of his clients, so the clients, for his or her part, can rest absolutely assured that they receive genuinely independent, well-informed and expert financial advice that will aid their own best interests.