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Financial advisory
RES5Financial Advisory Services✓An FA receives volume-linked commissions from a single insurer and can only recommend that insurer's products, yet markets itself to consumers as an 'independent financial adviser'. Under FAR Regulation 21, this is:
Reg 21(1) bars use of 'independent' (in a firm's name, promotion, or in providing FA services) unless the FA takes no product-bias commission/benefit from product providers (and pays none to its reps), operates free of any direct or indirect restriction on the products it recommends, and is free of any conflict from a connection to a product provider. Bias commission plus a single-insurer product range fails all three limbs.
'Independent' is a regulated claim with strict conditions — a licence, a client waiver, or self-labelling does not qualify a biased, single-provider FA.
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