What is a Independent Financial Advisor?


At Rotherwood Insurance Consultants, we are Independent Financial Advisors, offering access to the whole market of financial products, from Pensions and Investments to Inheritance Tax Planning and Tax Planning. But what are the benefits of a Financial Advisor being Independent? There are many different types of Financial Advisors in the world of financial planning. Two of the most common types are Independent Financial Advisors and Tied Financial Advisors. Even though both operate in the same financial planning space, they operate in vastly different ways. Independent financial advisors, in particular, offer a unique set of advantages that can significantly impact your financial well-being. In this blog post, we will delve into the benefits of using an independent financial advisor and why their independence is a key factor in delivering tailored, unbiased, and superior financial guidance.

Unbiased Advice

Perhaps the most compelling benefit of working with an independent financial advisor is their ability to provide truly impartial advice. Unlike Tied advisors or advisors affiliated with specific financial institutions, independent advisors have no vested interest in promoting particular products or services. Their primary focus is on your financial well-being, ensuring that the recommendations they provide are solely in your best interest. This objectivity is a cornerstone of sound financial planning.

With a tied financial advisor, you are restricted in the number of investment options avaliable, potentially missing out on investment growth due to limited choice

Access to a Universe of Options

Independent financial advisors have access to a vast array of financial products and services from various providers. They are not limited to offering products from a single institution such as Tied advisors or advisors affiliated with specific financial institutions, which means they can tailor their recommendations to your unique needs. As a result a independent financial advisor can chose investments from any funds manager / insurance company be this Blackrock, Fidelity, JPM ect, where as a tied advisor can only chose from a limited number of fund managers.  This is similar to being to shop at Amazon and having access to almost any product on the market compared to only being able to shop at Woolworths. This breadth of choice enables them to construct diversified portfolios and select the most suitable investments that align with your financial goals and risk tolerance.

Customised Financial Plans

Independence allows financial advisors to craft personalised financial plans that cater specifically to your circumstances and aspirations. They take the time to understand your financial goals, family situation, risk tolerance, and time horizon, and then design a plan that is tailored to you. This level of customisation ensures that your financial strategy is optimised to achieve your objectives efficiently.

A Fiduciary Duty

Independent financial advisors often operate as fiduciaries, which means they are legally bound to act in your best interest at all times. This commitment to fiduciary duty goes beyond ethical considerations; it’s a legal obligation. When you work with an independent advisor, you can trust that they are bound by this duty and will always prioritize your financial well-being.

Freedom to Adapt

Life is full of unexpected twists and turns, and your financial plan should be flexible enough to accommodate changes. Independent financial advisors have the freedom to adapt your plan as your circumstances evolve. Whether you’re experiencing a significant life event like a marriage, the birth of a child, or a career change, or simply need to recalibrate your financial strategy due to market shifts, an independent advisor can provide guidance that is agile and responsive to your changing needs.

Objective Risk Assessment

Risk management is a cornerstone of financial planning. Independent advisors can objectively assess your risk tolerance and help you strike a balance between achieving returns and preserving capital. They can also recommend risk management strategies, such as diversification or hedging, to protect your investments against unforeseen market fluctuations.


The benefits of working with an independent financial advisor are clear: unbiased advice, access to a vast array of financial options, tailored financial plans, a fiduciary duty to act in your best interest, adaptability, and objective risk assessment. Their independence allows them to focus solely on your financial well-being, making them invaluable partners on your journey to financial success. When seeking professional financial guidance, consider the power of independence and the advantages it brings to your financial future.

If you are interested in speaking to an Independent Financial Advisor, please fill in the below information and we will get back to you or visit our Contact page for information on how to get in touch.

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