Independent - Agent unattached to a specific lenders products
Independents are agents that are not attached to a specific finance product or provider. So independent agents have a larger pool of finance products to choose from when trying to get customers a highly competitive deal. Independent agents should also observe some key principles when carrying out their business.
The independent agent should ask for sufficient information to be in a position to form a comprehensive view of the customers needs. The independent agent should then select products from the market, or from a panel of companies believed to be the best in the market. The independent agent should be in a position to offer the best advice, both on the products selected and the customers needs and ability to pay. Independent agents are obliged to give customers full details of any commission they receive on the policies and investments they recommend as well as the level of charges.
Independent Example - Low Credit Rating Home Re Mortgage
A home re mortgage for a customer with a low credit rating means switching an existing UK mortgage for a new cheaper deal, more often than not to a different UK home loan re-mortgage company.
A consumer with a low credit rating interested in home re mortgaging could use an independent agent to research and find a cheaper mortgage product thus saving them time and money. The independent agent should be in a position to offer the best advice, both on the products selected and the customers needs, their ability to pay and because of their adverse rating.
Independent Agent Information
There has been a rise in the number of compensation cases recently where consumers claim to have been given poor advice or not been informed correctly of products terms and conditions, or the risks involved in particular investments..
To avoid this situation consumers are advised to ensure their independent agent is fully aware of both their needs and ability to pay, and any financial products suggested to them are fully explained and any risks outlined with further information available.
If you have doubts about an independent agents authorisation, go to the Financial Services Authority's firm check service and you will be able to see whether the adviser is registered. Independent financial adviser's as well as tied agents are regulated by the Financial Services Authority. If an adviser is not, they are trading illegally.