An unbiased Financial Advisor is one who is not tied to any particular funds or financial products or does not have any other conflicting interests to yours. They also do not receive monetary motivation or incentives to recommend a specific set of products or a particular avenue of advice.
In short, they are required to act solely in the best interests of their client and not for the bank, product provider or advisory firm they work for.
They should also be properly registered with the appropriate regulatory bodies, have the required educational qualifications and follow a rigid compliance system to ensure they are well suited to look after your financial affairs.
Firms that are managed by advisors who are unbiased will often have client rosters that they have worked with for many years. Developing such relationships is critical to establishing long-term trust. When it comes to monetary guidance, a client needs to feel completely confident in the individual or firm providing them with the advice, particularly since it might be at a very important time of their life, such as dealing with an estate or during retirement planning.
The right choice of Financial Adviser is key to making sure you get the best and most suitable advice. Not only in terms of your financial performance but also for peace of mind that you have someone you trust advising and guiding you to make the right financial decisions. Knowing to what extent you value how unbiased a Financial Adviser is should help you in your search for the right one for you.
One of the most important aspects when working with a financial adviser is the existence of a good level of trust. Trust is important not only to give you peace of mind that your adviser is not going to run off with your money or something else fraudulent, but trust that your adviser is doing everything they can to help you meet your financial goals. You want to be sure that they are doing everything they can to boost your wealth, and the advice being unbiased is going to help add a lot more trust to the relationship.
Advice given on a long term basis with the same adviser usually results in a better outcome for both the client and the adviser.
Unbiased advisors that see their clients as people rather than “cash pots” will forge much stronger personal relationships with them as they expect the relationship to be long lasting. A long term relationship is usually beneficial for all parties as the adviser can give better and more impactful advice the more they get to know about the client and their situation and objectives and the client gains a growing understanding of their own financial situation through receiving ongoing, quality, unbiased financial advice.
As previously mentioned, being untethered to any type of product or fund provides a greater level of freedom for the options that the client can consider. Assistance with estate planning, retirement planning, general asset management or managing a portfolio is a lot easier if the most appropriate solution is recommended as opposed to one that makes life a bit easier for the adviser.
If an adviser is unbiased in their choice of most suitable advice for their clients then they are more likely to be exposed in their research and advice to a wider range of financial products. A greater knowledge of a wider set of financial products is likely to be greatly beneficial for any future clients as the adviser will have a broader set of knowledge, skills and experience to draw on and is likely to be able to give more appropriate advice.
A Financial Adviser who is truly unbiased will have no issues explaining the fees they charge, how they are built up and how they relate to the advice being given. As such clients can enjoy a much more transparent fee structure and can more easily understand what they are paying for and what value they are getting. This open and transparent approach around fees should be beneficial for both the client and the adviser and should lead to a greater level of trust and a more solid long term client/adviser relationship.
An unbiased adviser will naturally look across a wider range of financial products before deciding on the right mix for your situation. As such they will have a much better chance of building a diversified portfolio than an adviser who limits themselves to only a limited number.
Adequate diversification is a very important feature when building an investment or pension portfolio and it’s important to make sure you are adequately diversified.
If you want truly unbiased financial advice then the best thing to do is contact an Independent Financial Adviser (IFA) which will help give you peace of mind that the advice being given to you is truly for your benefit. An IFA has no reason to offer you certain deals but instead can be 100% unbiased and completely in your corner for any financial decisions you make.