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A financial adviser can help the customer in giving advice related to financial matters and achieving desired goals by the customer. The adviser is paid either by fee, commission, a combination of both or even fixed salary if he/she is associated with some firm.

A financial adviser should make the customer aware of the product details, and for this purpose he/she has to thoroughly analyze the customer's need. A trust relationship should exist between the customer and the adviser.

The adviser should provide customer's the "key fact" documents so that the customer would have the know how about the financial adviser and the payment options. Cautions should be taken by the customer in choosing the adviser. Though there have been numerous cases of corruption associated with commission payments in U.K and all over the world, but the financial adviser should not be deprived of his right of commission. It would further lead to other illegal means.

There is a contrast between the two relationships that is; between the customer and the Adviser; and between the customer and the
supplier. Financial adviser should be strictly punished if he/she turns out to be corrupt. The customer should remain in contact with the financial regulatory bodies to ensure their rights. Commission is the right of adviser and if the customer keeps a strong check on the adviser, corruption cases can be avoided.

1. INTRODUCTION ABOUT FINANCIAL ADVICE

Financial advice is an advice that is given in financial matters such as investing, budgeting, insurance, savings and retirement plans to individuals as well as institutions. Such advice is given by banks, insurance companies, investment companies, lawyers and financial advisers. We can say Financial advisers are such institutions or individuals whose profession is to provide financial advise. Such professionals also provide legal, tax or medical advice. Thus a financial advice is an advice to a specific customer on any transaction in respect of a financial product, communicated to the customer by any means or medium. Authorized financial adviser is a person who has been granted an authorization to act as a financial adviser by granting license to that person under law. Hence a financial adviser maximizes the net worth of their clients by proper asset allocation.
There are three types of advisers in U.K;

1. Independent Financial Advisers.(IFA)
2. Non-Independent Financial advisers or Tied agents or Advisers.
3. Multi-Tied Agents or Advisers.
Independent Financial

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