Restricted or Independent Advice

There are two types of adviser authorised to deal with the public - Restricted  and Independent.

RESTRICTED ADVISERS can only advise on the products of one provider or a limited selection of providers.
Many people buy financial
products through agents, such as the sales staff who work at their
bank or building society. When they want a pension or investment product
they often find it easier just to nip into their bank and accept what
is sold through that organisation's relationship with a single life
insurer or investment house. The person providing the product
information or advice is acting on behalf of the product provider. Many
people buy products this way, usually because they feel more comfortable
buying from a big name organisation and assuming, sometimes
incorrectly, that they are bound to get a good deal. What they are
actually getting is limited information from a small selection of
products. Confusingly, some banks also have an IFA available upon

INDEPENDENT FINANCIAL ADVISERS (IFAs) offer unbiased financial advice to their clients and recommend the most suitable products, if any, after researching the whole market. The key differentiator is that they act on your behalf and will offer you the option of paying by a fee, as well as the option of paying by commission. Essential Money Limited is committed to offering Independent Financial Advice. The big advantage of independent financial advice is that you have access to all the products in the market through a qualified practitioner. An IFA's job is to research and recommend the most appropriate financial solutions after asking their clients a whole range of detailed questions about their circumstances, their financial goals and their attitudes to risk. IFAs are answerable to the regulator, the FCA to ensure that they keep to the rules. As they act on your behalf they provide personalised written reasons why they have recommended particular products or a course of action.

Independent Financial Advisers can be broken down further:

Generalist - These advisers have a broad understanding of general financial issues. They tend to deal with individuals from various career backgrounds and therefore are not able to give occupation specific advice. They may also arrange general insurance such as buildings and contents cover and motor insurance.

Specialist - This is the category Essential Money fall into. We deal exclusively with dentists at all stages of their careers. Giving financial planning advice to dentists is a very complex process and therefore requires specialist advice.

It is important to know that the person you deal with is fully independent. Many dentists become clients at the early stages of their careers. This is the time when they are buying most of their financial products. It is vital you know how you are paying for the advice you are receiving and how you will be charged in the future. It is frequently mentioned in the press that it is best to seek advice
from independent advisers, as their level of expertise and competence is
usually higher than that of an adviser who can only sell the products
of one or several companies.