Business and Management

What Is An Independent Financial Advisor?

Independent Advisor can provide advice on any product in the marketThere are two type of financial advisor in a financial business one is independent and other is restricted advisor.

A Restricted Financial Advisor is a term used for companies that have some form of restrictions on the advice they offer.

Basically the difference is that a limited company will only offer advice on the selection of financial products, whereas an independent company visible throughout the market. You can find online firms like foxgroveassociates which can provide assistance regarding Finance terms.You can browser similar sites fo these type of information.

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A company may be limited in the sense that they are bound to a particular financial product provider or the provider.

In practice, a limited liability company may be advised on a large number of financial products from many different providers, not just the overall market.

However, unless the company is able to meet the strict regulatory rules and provide independent advice to all the services they provide they cannot describe themselves as Independent Financial Advisors.

An advisory firm 'must disclose in writing, in good time before the provision of services in connection with the basic personal recommendations or advice in relation to retail investment products, whether the suggestion would be: independent advice; or restricted advice '.

Basically this means that prospective clients a company should be notified if a financial advisory firm they are dealing with a Restricted or Independent.

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