The Financial Services Act 1986 made important distinctions
between the kinds of advice available to the consumer.
It differentiated between
- Tied agents who work for specific companies,
recommending products from one particular company's range
only and
- Independent Financial Advisers or IFA's,
who offer impartial advice and select products accordingly
from the marketplace as a whole
The law [ Financial Services and Markets Act 2000 ] has recently
been changed to allow partially-tied agents, nevertheless one
key advantage of taking an independent view becomes immediately
apparent - choice.
Best Advice
In
addition, an IFA is legally obliged to give you what's known
as best advice, a term with a precise legal definition. It
means gaining a full understanding of your circumstances and
aims, before helping you choose any financial solutions best
suited to your individual needs.
The Financial
Services Authority regularly check that IFAs are following
these rules.
So how do you choose an adviser?
If you are interested in making your money move in an ethical direction
or want flexible arrangements for your individual
or organisation's pension and other savings schemes then it
makes sense to consult a company such as Bromige which specialises
in these areas.
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