Independent Advice V Tied Advice?

Recent research from IFA Promotion has found that a year on from depolarisation, 84% of people still cannot tell the difference between tied, multi-tied or independent advisers, and do not understand the different types of advice available. 

Seventy two per cent of people who saw a financial adviser in the last twelve months believe that they saw an independent financial adviser, while 10% think that the adviser they saw was multi-tied, and 13% think that they took advice from a tied adviser. 

But the annual research indicates that many of these people are mistaken, as 32% have taken advice from a bank or building society, while only 18% have seen an independent financial adviser over the last five years. 

Our view 

Let us explain the different types. 

• Independent Advisers:  Access to the Whole Market but must offer you options of paying a fee or commissions rather than just taking commissions.  In many cases, you can save many thousands of pounds by working on a fee basis.    is an Independent Financial Adviser. 
• Whole of Market Advisers:  Access to the Whole Market but generally offer commissions based advice.   Do not have to offer a fee option, but can do if they wish. 
• Multi-tied Advisers:  Have agencies with a range of the providers and only offer advice on those providers products, generally on a commission basis.  Do not have to offer a fee option, but can do if they wish. 
• Tied Advisers:  Have agency with just one provider and only advise on that provider's products, generally on a commission basis.   Do not have to offer a fee option, but can do if they wish.

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