The financial consultant can work for a consultancy company (by law he must be a sole agent, because the principal is jointly and severally liable for his work) or independently. The “independent” financial advisor is in any case duly registered with the Ocf professional register and is authorized to carry out investment advice.
However, it should be noted that the independent financial consultant never comes into direct contact with the savings to be managed: for the execution of the recommended operations, he leaves the clients with the task of giving instructions to the qualified parties (for example, banks).
What can the independent financial advisor do?
The independent financial advisor has the task of meeting the investment objectives set by the clients (respecting, for example, the risk profile) and, more concretely, that of knowing how to choose on the basis of those objectives among the numerous financial instruments available on the market, as well as being able to diversify them by type or product case.
What can’t the independent financial advisor do?
The independent financial consultant, in addition to not being able to manage savings directly, cannot even receive special assignments or powers of attorney for the direct execution of operations, nor can he delegate to dispose of the sums or assets of the customers. The independent financial consultant is, in fact, called fee-only: this means that he is remunerated in a fee (the fee) only by his client.
Brokers and promoters
If we talk about financial advisors, we must also make a distinction with other professionals in the financial sector: intermediaries and brokers. The brokers are essentially insurance figures: that is, they work just as insurers. They operate without being sole agents. Their peculiarity is to be able to offer their customers the solution that best meets the needs of the insured on the market. Years ago there was the figure of financial promoters , which today has been replaced by
financial advisor. The promoters were intermediaries who had the faculty – unlike the bank – to offer “off-site” investment products and services, that is, not at the offices of the company they represented.