Financial Advisers: Why Independence Matters.



Posted on: 27th April 2015

When going about the search process for a financial adviser, there will be a fair few things you need to take into account before narrowing things down to a single ideal candidate.

However, perhaps the first and most important consideration to bear in mind is that of independence – something that immediately splits the market right down the middle. On one hand you have the expert advisers that either work for or are in some way affiliated with other providers or businesses. And on the other, there are those that work 100% independently with no specific ties or affiliations whatsoever.

Now, there will always be those who advocate the former of the two groups as by working closely with big-name providers, it’s possible to gain access to unique deals and exclusive special offers. However, the vast majority of experts will always advise speaking with independent financial advisers before going ahead with any decision as this is the only way of ensuring that the information you get is 100% unbiased.

Reliable Advice.

While there’s much to be said for what’s on offer from those financial advisers and firms that work for larger brands, it’s inevitable that the information they offer will be to some extent biased or swayed. The reason for this is, of course, the fact that it’s hardly in their best interests to tell their clients the whole truth, should the truth be that this is not in fact the brand they should be choosing. Instead, the priority is signing up as many new customers as possible and ultimately making money – even if this means to some extent, steering folk in the wrong direction in the process.

It’s not to say you cannot come out with a great deal and a price you’re happy to pay, but you’ll perhaps never know if you could have scored a better and more affordable deal elsewhere.

With independent financial advisers however, things tend to be the other way around.

By working solo and having no specific ties with any one provider over any other, they have nothing to gain by offering anything but 100% impartial advice. After all, it doesn’t really matter to the adviser where the client chooses to take their business as this will not influence their inter-brand relationships or commissions – all of which breeds wholly unbiased and honest advice.

Getting it Right First Time.

The problem with making mistakes when it comes to taking financial advice on board is that it doesn’t tend to be for several years until any such mistakes are noted. Needless to say, this far down the line the damage may already be done and the consequences inevitable. From pensions to mortgages to investments to life insurance and so many more examples, these are all the kinds of things that simply must be approached the right way from the start as they are too important to be swayed by biased advisers with company ties.

For your own long-term benefit, independent really is the only way to go.