What Is A Financial Advisor?
There are basically two types of advisors in the financial services sector: Independent and Restricted. A Restricted Financial Advisor is a term used for companies that have some form of restrictions on the advice they offer.
The difference is that a limited company will only offer advice on the selection of financial products, whereas an independent company visible throughout the market.You can get assistance from best financial advisor in Sevenoaks and financial planners, London
According to regulatory guidelines, an advisory firm 'must disclose in writing, in good time before the provision of services in connection with the basic personal recommendations or advice in relation to retail investment products, whether the suggestion would be: independent advice; or restricted advice '.
This means that prospective clients a company should be notified if a financial advisory firm they are dealing with a Restricted or Independent.
A Google search for Financial Advisors Limited produces very little advisors which clearly refer to them as Restricted, since companies are often reluctant to admit the status restricted in marketing materials.
Because of the latest regulatory changes at this time there is much debate about the Independent and Restricted Advisors and consequently a lot of information available online. However, the prospective client's decision making should always depend on the financial circumstances of each.