The value of independence
WHY CHOOSE AN INDEPENDENT CONSULTANT?
WHAT DOES THIS TYPE OF ADVISE MEAN AND WHAT BENEFITS DOES IT INVOLVE?
First and foremost, CONSOB provides us with precise criteria to identify and define financial advisory activity as “independent”: an independent financial advisor can provide consulting services without holding any money and financial instruments belonging to customers. He is not bound to any intermediary. He is paid exclusively by customers, who benefit from the service, and does not receive grant-backs or commissions by any bank, intermediary or product company.
For these reasons, independent advice is not sales-oriented and not compromised by any conflict of interest. This results in greater objectivity and freedom in choosing the most suitable investment for customers, which does not necessarily coincide with those offered by a particular broker.
The most common choice for investors is to turn to traditional channels, such as banks or insurance companies. The reason is that this kind of advice seems to have no cost but, in reality, these operators are in conflict of interest with customers. Their compensation generally comes from high commissions on products sold and the higher the level of investment risk, the higher the commissions.
