Independent Financial Advisors are well known in countries like the U.K and Australia, where they offer a whole range of financial planning services to individual customers. Often, this includes the marketing of financial products such as unit trusts and insurance.

The word 'Independent' is used to distinguish these advisors from the advisors that are employed by financial product providers such as insurance companies, banks and fund houses. Because these financial advisors are not 'tied', they are free to solve for their client's financial needs using a wide range of products from different product providers.

In Singapore, the Financial Advisors Act (FA Act) of 2001 has enabled such 'independent' companies to be formed to offer financial planning advice, and to market financial products.

However, under the Singapore FA Act, the word 'independent' is regulated, and only FA companies who have made a commitment towards a 'non-bias' remuneration structure are able to use it. In general though, the customer should take the word 'independent' to mean 'not tied to a financial products provider'.

Services offered by FA companies

Most FA companies offer financial planning services to individuals that include investment planning, retirement planning, insurance planning, and planning for other financial goals (like for the children's education). Some FA companies offer advice on wills and succession planning and tax planning.

The advantages of using the services of an FA is personal and holistic financial advice. They are able to provide advice that encompasses all the different financial needs that a typical individual or household may have.

FA companies on IFAST Network

IFAST Network provides an administrative and settlement service to FA companies in Singapore (read more about IFAST Network here).

FA companies who are signed on to IFAST Network's platform have access to over 200 unit trusts and various other financial products and services. Customers who purchase unit trusts from FA companies who are on IFAST Network will have their purchases administered by a highly specialized team, and custodised at DMG & Partners Securities Pte Ltd, a part of the Deutsche Bank Group.