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What is an IFA? An IFA is an independent financial adviser: a regulated professional who gives advice on pensions, investments, protection and estate planning, and who can recommend products from across the whole market rather than from one provider’s limited range. That last part is what the word independent actually means, and it is the main thing separating an IFA from a restricted adviser.
Key takeaways
- IFA stands for independent financial adviser.
- Independent means whole-of-market advice, with no ties to any provider or product.
- A restricted adviser can only recommend from a limited panel, sometimes a single company’s products.
- Every IFA in the UK must be authorised and regulated by the Financial Conduct Authority, and you can check them on the FCA Register.
- IFAs advise on pensions, investments, protection, tax and estate planning, and must tell you their charges before you commit.
What does IFA stand for?
IFA stands for independent financial adviser. You will also see the terms financial adviser, financial planner and wealth manager used, sometimes interchangeably. Those job titles are not protected in the way that “solicitor” is, so what matters is not the label but two things: whether the firm is authorised by the Financial Conduct Authority, and whether its advice is independent or restricted. We compare the terms in IFA vs financial adviser.
Independent vs restricted advice
This is the distinction that matters most, and it is the one most people have never had explained to them. Every UK adviser must tell you which they are before giving advice.
| Independent (IFA) | Restricted adviser | |
|---|---|---|
| Product range | The whole of the market | A limited panel, sometimes one provider |
| Who they work for | You | Often tied to a provider or network |
| FCA regulated | Yes | Yes |
| Must disclose status | Yes, before advising | Yes, before advising |
| Typical strength | Choice and impartiality | Depth in a narrower range |
Restricted does not mean bad. A restricted adviser can be highly competent, and some specialise deeply. But if you want the reassurance that a recommendation was chosen from everything available rather than from a shortlist, independent is what you are looking for.
What does an IFA actually do?
Most people imagine an IFA simply picks investments. In practice the product is usually the last step, and often the least important one. A typical engagement looks like this:
- Understands your position. Income, assets, debts, pensions, family, and what you actually want your money to do.
- Establishes your capacity for risk. Not just how you feel about risk, but how much of it your plan can survive.
- Models the future. Cashflow planning to test whether you can retire when you want, and what happens if markets fall or you live to 100.
- Makes recommendations. The products and tax wrappers that deliver the plan, drawn from the whole market.
- Reviews it. Circumstances, markets and tax rules change. Advice that is never revisited stops being advice.
What can an IFA advise on?
The scope is wider than most people expect. At First Equitable it covers pensions and retirement planning, including consolidating old pensions, drawdown and annuities; savings and investments; trusts and inheritance tax planning; protection such as life cover and income protection; and planning for business owners and company directors.
Some areas need specific permissions on top of general authorisation. Advising on a defined benefit, or final salary, pension transfer is the clearest example, and many firms gave up those permissions altogether.
How are IFAs regulated?
Every firm giving regulated financial advice in the UK must be authorised by the Financial Conduct Authority. You can check any firm free on the FCA’s Financial Services Register using its firm reference number. First Equitable’s is 782577.
Regulation also gives you recourse. If something goes wrong and the firm cannot resolve it, you can take the complaint to the Financial Ombudsman Service free of charge. Advice from an authorised firm is also covered by the Financial Services Compensation Scheme, within its limits.
Beyond authorisation, look for Chartered status. It is the highest professional standard in UK financial planning and is held by a minority of firms.
How much does an IFA cost?
Charges vary, and any adviser must set theirs out in writing before you commit to anything. Most firms use a mix of an initial fee for the advice and report, then an optional ongoing fee, usually a percentage of the assets they look after.
First Equitable’s initial consultation is free and at our cost. After that, there is a fixed £1,000 charge for your recommendation report. If you proceed, the implementation fee is tiered based on the value of the portfolio being set up and includes the £1,000 report charge, rather than being charged on top. Ongoing service is optional and starts from as little as 0.3% a year, with no minimum contract.
To put that ongoing rate in real terms, 0.3% a year works out at:
| Portfolio value | Ongoing fee at 0.3% a year |
|---|---|
| £100,000 | £300 |
| £250,000 | £750 |
| £500,000 | £1,500 |
| £1,000,000 | £3,000 |
Those are illustrative figures at our lowest ongoing rate, not a quote. The service level you choose determines the actual rate, and we give you a personalised quote at your first meeting. Full detail is on our charges page.
When should you see an IFA?
Usually at a decision point rather than on a schedule. The common triggers are approaching retirement, receiving an inheritance or a lump sum, being offered a transfer value on a final salary pension, selling a business, divorce, or realising you have several old pensions and no idea what they are worth.
You do not need to be wealthy. The value of advice is usually highest when a decision is irreversible, and plenty of pension decisions are exactly that.
IFA FAQs
What does IFA stand for?
IFA stands for independent financial adviser. It means the adviser can recommend products from across the whole market rather than from one provider’s limited range.
What is the difference between an IFA and a financial adviser?
All IFAs are financial advisers, but not all financial advisers are independent. A restricted adviser can only recommend from a limited panel. Both must be FCA authorised and must tell you which they are before advising.
Are IFAs regulated in the UK?
Yes. Every firm giving regulated financial advice must be authorised by the Financial Conduct Authority, and you can check any firm free on the FCA’s Financial Services Register.
How much does an IFA cost?
Charges must be disclosed in writing before you commit. First Equitable’s initial consultation is free, and ongoing service starts from as little as 0.3% a year, which is 750 pounds on a 250,000 pound portfolio. There is no minimum contract.
Do I need a lot of money to use an IFA?
No. Advice tends to be most valuable when a decision is complex or irreversible, such as a pension transfer or drawing retirement income, rather than at a particular level of wealth.
Speak to an independent adviser
First Equitable is a whole-of-market firm of independent financial advisers with offices in Liverpool and Chester. See our independent financial advisers in Liverpool and independent financial adviser in Chester pages for how we work. The first consultation is free, at our cost, with no obligation and no minimum contract.
Information correct as at July 2026 and based on the rules for the 2026/27 tax year. Tax rules, allowances and thresholds can change, and the value of any tax relief depends on your individual circumstances. The Financial Conduct Authority does not regulate some forms of estate planning, trusts or tax advice. The value of investments can fall as well as rise and you may get back less than you invested. This article is general information only and does not constitute personal advice. You should seek advice specific to your circumstances before acting.
