Why true independence matters in financial advice
When you were choosing a financial adviser, you might have noticed that almost everyone claims to be ‘independent’.
But true independence in financial advice is actually quite rare – the word has become a bit like restaurants claiming their food is ‘authentic’ – it gets used so much that it loses its meaning.
So does it matter? Well yes – having a truly independent adviser can make a real difference to your financial future.
Think about it this way
Imagine you walked into a supermarket looking for baked beans, and the shop assistant immediately steered you towards their own-brand tins, insisting they were the best choice. You might wonder: are they recommending these because they're genuinely the best value, or because the shop makes more profit from their own products?
Now imagine a different scenario. You walk into an independent grocer who stocks everything – Heinz, Branston, supermarket own-brands, premium organic options, you name it. They make their money from helping you find the right product for your needs, not from pushing particular brands. Which shop would you trust to give you honest advice?
That's essentially the difference between truly independent financial advisers and those who claim to be independent but aren't quite what they seem.
Understanding the difference
Independent Financial Advisers (IFAs) provide advice based on a comprehensive and fair analysis of the relevant market. They are able to recommend products from across the whole of the market, without any limitations or ties to specific providers.
Restricted Advisers offer advice that is limited in scope. This may be due to a focus on certain types of products, or because they work with a specific provider or a selected panel. The nature and extent of this restriction must be clearly disclosed to clients.
Both independent and restricted advisers are required to meet the same regulatory standards and are both required to be authorised and regulated by the Financial Conduct Authority (FCA).
Why do big companies do this?
It's simple economics. Vertical integration - where companies control every step of the process from advice to investment products - can be a way to streamline operations and manage costs. When a company owns the advice firm, the platform, and the funds, they can control the entire client journey.
Some networks are quite open about being 'restricted'. As long as they're transparent about it, that's fine - the client knows exactly what they're getting and can make an informed choice.
At Bow FS, we're genuinely independent, which means:
No kickbacks. We don't get paid by fund managers or platforms to recommend their products.
Whole-of-market access. We can choose from thousands of funds, not just a select few.
Negotiating power. Because we're not tied to particular providers, we can shop around for better deals for our clients.
No bias. Our only incentive is to find what's best for you.
We recently left our previous network, Sandringham, precisely because they started restricting which funds we could access. We partnered with Corbel instead – one of the few networks that allow advisers like us to maintain our independence.
Why this matters to you
You might think, "Does it really matter? Surely all investment funds are broadly similar?"
Actually, the differences can be huge. An independent adviser might find you a fund charging 0.5% annually instead of 1.5%. Over 20 years, on a £100,000 investment, that difference could cost you £27,000 in unnecessary fees.
More importantly, an independent adviser isn't constrained by what their parent company wants to sell. They can recommend the investment approach that's genuinely right for your circumstances, not what generates the most revenue for the firm.
The independence test
Here are some questions to ask any financial adviser:
Who owns your firm? If it's a household name insurer or investment company, dig deeper.
Can you access any fund on the market? Or are you limited to a ‘panel’ of approved options?
Do you receive any payments from fund managers or platforms? Beyond standard trail commission, are there additional incentives?
If I wanted to invest in a fund you don't normally use, how easy would it be? If the answer involves forms, committees, and long delays, they're not as independent as they claim.
The compliance bit
Now we’d like to point out that larger networks aren't necessarily bad – they can offer certain advantages like robust research teams and economies of scale. Some restricted advice models work well for particular clients.
But we believe that when you're making decisions about your financial future, you deserve advice that's genuinely in your best interests. No conflicts, no hidden incentives, no corporate pressure to recommend particular products.
When you work with us, you can be confident that our recommendations are based on one thing only: what's best for you and your financial future.
If you’re not currently with us and you'd like to find out what truly independent financial advice looks like, give us a call. We promise we won't try to sell you any own-brand beans.
Bow Financial Services is an appointed representative of Corbel Partners Limited, which is authorised and regulated by the Financial Conduct Authority. This allows us to maintain our independence while ensuring we meet all regulatory requirements. The value of investments can fall as well as rise, and you may not get back the full amount invested.
The information in this blog was correct as of 22 September 2025.