In the UK, financial advice is described as either independent or restricted.
Understanding the difference helps clarify the scope of advice an adviser can provide.
UK regulation requires advisers to explain whether their advice is independent or restricted.
Independent advisers:
can consider products from the whole market
are not limited to specific providers
must provide unbiased and unrestricted advice
Restricted advisers operate with limitations, such as:
advising on a limited range of products
using a specific provider or panel
focusing on certain types of solutions
The restriction must be explained clearly.
Independent and restricted advice are not inherently good or bad.
The key difference is scope, not quality.
This article explains the difference between independent and restricted advice, not which is right for you.
If understanding adviser types raises questions about how advice fits your needs, some people find it useful to think things through before advice or action. Evoa exists for that purpose — before advice and before action.