For those seeking to build a relationship with a financial planner, we thought it would be helpful to set out the meaning of ‘independent’ and why this is important.

Financial planners will either be independent or restricted. This should be clearly explained in initial discussions and their terms of business.

Independent financial planning firms are able to assess a suitably wide range of relevant investment products and providers which are sufficiently diverse to ensure that clients’ objectives can be objectively met. They must not be limited to the products or investments provided by the firm itself or other closely linked companies.

A restricted firm will not be able to research and recommend from the wider market and will be limited to recommending their own products or investments or those of a closely linked company.

Why is this important?

Firstly, financial planning is very specialist and there a great many advice firms and advisers, all of which may do things a bit differently. When selecting an adviser to work with, it is vital to understand the framework within which they are able to provide advice. If a firm is independent, the advisers will be able to focus on finding the most suitable investment for their client from a wide range of options, rather than trying to fit them into a limited range of options.

Secondly, if the investment is not performing as expected or is no longer suitable, the independent adviser can recommend changes, again after reviewing what is available across the board. A restricted adviser may not have many other options available to offer clients if the products or investments in place are no longer the best for the client.

To understand further about how you can benefit from independent financial advice please contact us on 0330 320 9280, email info@cravenstreeetwealth.com or complete our online enquiry form.

The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.

You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.

Craven Street Financial Planning Limited is authorised and regulated by the Financial Conduct Authority.