A financial adviser can help you to grow and protect your wealth over the course of your life. However, they fall into two main types: independent financial advisers (IFAs) and non-independent advisers, sometimes known as restricted advisers.

first-time investors

What is a restricted adviser?

Financial advisers, as well as giving advice, can offer financial products such as investments, savings and insurance.

A restricted adviser, as the title indicates, has a limited number of products that he or she can offer their clients. Often, a restricted adviser works with one financial firm, such as a bank. Other restricted advisers may be able to offer a range of financial products, but from a limited number of companies.

Some advisers may focus on one area of finance, such as pensions, but can recommend products in that area from a wide range of providers. A restricted adviser may provide good advice, but we would recommend the use of an IFA in order to get the best financial products for your individual circumstance.

Financial guidance

Some people use the title of ‘financial adviser’, but only offer guidance without recommending any products. They can provide general information about a few investment products, but will leave it up to the client to choose which one.

Financial guidance may be useful, but there is a chance that the adviser will not be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme. This means that if you receive bad or misleading advice, there may be no means of redress.

Financial guidance may be cheaper than using an IFA, but we would argue that you will not be paying for the best service.

Independent financial advice

An independent financial adviser is able to recommend a number of products. They can access the whole of the financial market in order to match the best product to the client’s individual situation.

An independent financial adviser will have knowledge of all financial areas, including investments, savings, insurance, pensions, tax planning and family estate management.

An IFA should be registered with the Financial Conduct Authority, which makes sure that IFAs act ethically and only in the client’s own interests.

Why you need an IFA

You need to create a financial plan that will maximise your current income, prepare you for retirement, and make sure that your family are provided for when you die. To do this on your own can be complicated and time consuming, since few people have the necessary expertise to make sure that their financial plan is the best it can be. An IFA will help you define your financial objectives, then create a plan to achieve them.

What to expect from an adviser?

An adviser will meet with you and chat about your financial goals, any savings you have, your pensions, your income and outgoings. They will then put together recommendations based on your circumstances to see how they can get your money working harder.

The best advice starts with a conversation

Our team of financial advisers are highly qualified with experience in financial planning to work with you to create a financial plan that’s right for you and evolves with you – answering your questions, providing advice and updating your financial plan along the way to help you achieve your life goals and ambitions. You’ll also have access to additional resources and advice as advisers work with a range of specialists in multiple sectors, such as solicitors, business advisers and accountants.

PLEASE NOTE: Grosvenor Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority. The value of investment can go down as well as up and you may not get back the original amount you invested. Tax treatment is dependent on individual circumstances and may be subject to change. Tax planning is not regulated by the Financial Conduct Authority.

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