However, insurance and pension companies frequently vary the fees they pay to IFAs depending on how much of or what kind of product they have sold. This has led to accusations that IFAs are just as biased as tied agents. Nevertheless, the I in IFA does mean something. Although investors should be on their guard, as a general rule they will get better service from an IFA than from a company salesman. Checking which camp your adviser belongs to is important but can be tricky.
Many companies employ both IFAs and salespeople.
You can make sure by asking at the outset of a consultation whether he or she is tied or independent. Check their business card if you are unsure. To ensure complete objectivity there are a growing number of IFAs who do not take commission but who charge an hourly fee. For details ring the Money Management helpline on 0117-976 9444. The free leaflet How to spot an investment cowboy is also a useful guide.