In our article below, we delve into the advantages of independence, highlighting how it fosters unbiased advice, access to a diverse array of financial products and providers, comprehensive financial planning services tailored to individual needs, transparent fee structures, adaptability to changing market conditions, and a client-centric approach focused on long-term relationships and customized strategies. 

Why you should opt for an Independent Financial Firm

The Hayne Royal Commission exposed shocking revelations of financial services firms and their employees behaving in ways that were not in the best interest of the customers they should have been supporting. Sadly, many of the practices had been going on for years, sometimes decades. Ultimately, pursuit of profit was prioritised over customer needs.

When Strategy First was started in 2005, one of our core foundations was to be a firm that existed for the benefit of our clients. We are proud to be an independent financial planning firm. But what does “being independent” mean?

Put simply, independent financial planners are not tied to any specific financial institution or product. They are not owned by a corporation or other financial services provider, nor do they receive payments of any kind from financial product or service providers. This means that clients of Independent financial planners can have the confidence that the advice and recommendations they receive are based on a comprehensive analysis of the client's financial situation and needs, and not because the adviser is incentivised by a third party to make their recommendations.

Here are some key points to consider when it comes to independent financial planning and whether it's better to opt for an independent adviser:

1. Objectivity:
   • Independent Advisers: They can offer more objective advice because they are not incentivized to promote specific products or services tied to a particular company. Their recommendations are based on what is best for the client.
     
     
2. Product and Provider Options:
   • Independent Advisers: They have access to a wide range of financial products and providers in the market. This allows them to tailor their recommendations to better suit the individual needs and preferences of their clients.
     
     
3. Comprehensive Advice:
   • Independent Advisers: They can provide holistic and comprehensive financial planning services, covering various aspects such as investments, insurance, retirement planning, estate planning, and tax strategies.
     
     
4. Cost Transparency:
   • Independent Advisers: They may offer more transparent fee structures, providing clarity on how they are compensated for their services. This can help clients better understand the costs associated with financial advice. At Strategy First, we pride ourselves being a clear and transparent fee-for-service fee structure. All our fees are agreed to in advance, and fees paid by clients are the ONLY way we are paid.
     
     
5. Flexibility:
   • Independent Advisers: They have the flexibility to adapt their advice based on changing market conditions, economic factors, and shifts in the client's personal circumstances. Independent advisers aren’t incentivised to maintain or change a client’s products or structures. If a change benefits a client, we will recommend it.
     
     
6. Client-Centric Approach:
   • Independent Advisers: Their focus is typically on building long-term relationships with clients. This client-centric approach emphasizes understanding individual goals and tailoring financial strategies accordingly.

While independent financial planning has its advantages, it's essential to note that the term "independent" doesn't guarantee competence or reliability. It's crucial to research and select a financial adviser based on their qualifications, experience, reputation, and alignment with your financial goals.

Ultimately, whether it's better to opt for an independent adviser depends on your individual preferences, the complexity of your financial situation, and your comfort level with the adviser's approach. Some individuals prefer the independence and objectivity of advisers not tied to specific products, while others may find value in different types of financial advisory relationships.