investing advice

The Difference Between Advice and Guidance on Investments



Posted on: 3rd August 2022

When you look to invest a sizable amount of money somewhere, you make seek investing advice or guidance – the worst thing you can do is commit based on a Google search or someone else’s experiences. Everyone has their financial circumstances and how things play out – and yours will no doubt be different from everyone else.

This means you will also be open to pitfalls that didn’t happen to others. When you are venturing into the world of investing with a blindfold, chances are you will wander off the path and become lost – which is why you need sound advice and guidance based on your circumstances.

Purchasing financial products such as shares, bonds, funds, insurance, and pension advice Manchester are life commitments that are big ones to make – and making the wrong choice can be twice as costly. If you are thinking about any of these areas, it is important to be aware of the differences between advice and guidance available from independent financial advisers Cheshire.


Financial firms regularly use the term ‘advice’ as recommendations of what you should do, such as buying or selling a particular investment.

This recommendation is one personal to you, based on your specific circumstances and objectives with your finances. Only firms authorised by the Financial Conduct Authority (FCA) can provide this level of service to you. To find out which firms are regulated, you can check out the Financial Services Register to see if they meet the consumer protection rules.

Advice recommends what you should be doing in regards to specific investments, with the advisers responsible for the accuracy, quality, and suitability of the recommendations they put to you. Typically, there is a fee with this level of advice, but you will be told about any fees upfront.


When we talk about guidance, we are meaning it in a much broader term that includes more general information on financial products. This can be information on different types of investments or principles to consider when investing, but not include any specific course of action or personal recommendation as to how to invest.

Guidance is about providing the customer with different investment options before the customer decides for themselves on how to invest their money. Many people use guidance as a way to thin out the herd before seeking investing advice.

Any organisation can offer guidance, including financial services firms. The main goal of the guidance is solely to help customers make informed decisions on their own and have the map laid out for them to see how each option plays out.

If you are unsure about where you stand with advice or guidance, contact the team at haven IFA, the best independent financial advisers UK.