Tied Advisors
What is a 'tied adviser'?
A tied adviser is a financial adviser who can only offer a limited range of products from one provider, be a bank or insurance company. Generally they would be employed by it for this bank to offer the bank's own products only.
What is a 'multi-tied adviser'?
A multi-tied advisor is an advisor who's tied to several companies. It won't just be the one offering or the full independent range that an IFA could offer you, but they would have choices from a number of product providers. It's usually quite a limited number.
If tied advisers can only offer a limited range of products, why might I use one over an IFA?
If you've made a decision on the product that you're looking for and you want to get it processed quite quickly, you may be happy going to a tied adviser who will arrange it. But you've got to remember that they will only be able to arrange their own products. Apart from that really, I can't see huge advantages in using a tied adviser.
What is the difference between a tied adviser and an IFA?
The differences between a tied adviser and an IFA are quite substantial. A tied adviser has a very limited range of products, and they can offer you the best from that range to meet your needs. It may not be exactly what will meet your needs. If you go to see an IFA, they have to offer the best on the market from the whole range of products so you're more likely to come out of it with something that is perfect for you.
Are tied advisers regulated?
Tied advisers are regulated by the financial services authority in the same way that independent financial advisers are. All advisers have to be regulated. It's illegal to give advice in the U.K. without being authorized to do so.
Are tied advisers required to have qualifications?
Tied advisors are required to have the benchmark qualifications, as are all financial advisors in the U.K. They can go on to do advanced qualifications too if they want to specialize in particular areas.
Is a multi-tied adviser still independent?
A multi-tied adviser is not independent. They are tied to a small number of companies. They can only offer products from those companies, so there is no way that they can be seen as independent.
What are the advantages of using a tied adviser?
If you've done your homework and already decided what product you like from a particular bank or building society, you could actually go to the tied adviser linked to that organization and arrange things quite smoothly, and quickly. Some people do trust the name of their bank/ building society, and as a first choice would always go there for advice.
What are the disadvantages of using a tied adviser?
If you get advised from a tied adviser, you've got to remember that they're only offering you advice on a limited range of products. It may not be that they have, in their offering, something that would perfectly suit your circumstances. They will just offer you the next best thing. If you go to see an independent financial adviser, they're obliged to offer you the best option to meet your needs. Therefore, they're solely working for you, and your benefits. You'll get what you're looking for.