“Blue pill, end of story: tomorrow you wake up in your bed and believe whatever you want to believe.
Red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.
Remember, all I’m offering is the truth. Nothing more.”
This is perhaps one of the most famous lines from the film Matrix (1999). On one side lies the world as we know and experience it; on the other, a world unknown to us, capable of explaining more deeply how our own works.
Although the analogy with The Matrix may seem far-fetched, when it comes to managing one’s wealth, the choice of financial adviser can make all the difference. It is about opening one’s eyes to what has been done until now and looking at a different way of managing one’s assets.
The wealth of Italian households amounts to almost €5,600 billion (2023 figure). Of this, approximately €840 billion is managed through financial and insurance instruments by financial advisers authorised for off-premises solicitation (formerly known as financial promoters).
Although they generally propose better investment solutions than their banking counterparts, it is worth remembering that these professionals are remunerated on the basis of assets under management and products placed. They live, in other words, on commissions from the products they recommend to their clients.
The more expensive the product subscribed by the client, the greater their earnings.
This form of remuneration inevitably generates a conflict of interest between them and the client.
And this is, perhaps, the main reason why only 23% of the aforementioned €840 billion is represented by instruments classified as “administered savings” — those which are less costly for the client and less profitable for those who propose them.
It should be noted that within administered products there exists a niche of financial instruments represented by certificates (certificati). In addition to being instruments unsuitable for all investors and often sold to clients indiscriminately, they carry subscription or placement costs that can sometimes be considerable — costs that are not visible to or perceived by the subscriber, yet are decidedly present.
Let us therefore examine ten reasons why choosing an independent financial adviser could prove a better decision than engaging an authorised off-premises adviser.
1. Independence and absence of conflicts of interest
Why choose an independent financial adviser?
Independent financial advisers operate without ties to banks or commercial networks and have no interest in placing specific financial instruments. This allows them to provide impartial, personalised advice based exclusively on the client’s needs.
An independent financial adviser can therefore recommend the most efficient financial instrument available on the market, without being confined to the products offered by a single bank.
This is possible both by maintaining existing banking relationships and by selecting a different institution that may also offer better services and terms.
2. Personalised advice and a bespoke approach
What are the advantages of engaging an independent financial adviser?
An independent financial adviser draws up a personalised financial plan based on the client’s specific needs and objectives, without being bound by standardised models imposed by banks or networks. Free from budgets, incentives, and commercial pressures.
If your goal is, for example, to save for your children’s university education, an independent financial adviser will analyse your financial situation and develop a bespoke plan to achieve that specific purpose. And rather than recommending a conventional product that is more advantageous for them than for you, they will be able to indicate the most efficient solutions — and almost certainly the least costly ones.
3. Transparency of fees
How is an independent financial adviser remunerated?
Independent financial advisers offer a transparent fee structure, generally based on an hourly rate or a percentage of assets under management, rather than on commissions derived from the promotion of financial products.
With an independent financial adviser, you will know exactly the cost of the services, with no unpleasant surprises or additional charges linked to the promotion of specific financial products — which often, and not entirely by coincidence, turn out to be the most expensive for you and consequently the most profitable for those who propose them.
The financial adviser authorised for off-premises solicitation (formerly financial promoter) is in all respects equivalent to a commercial agent. They therefore promote the products placed or distributed by the bank or network they work for. Everything is tied to commissions (front-end fees and management fees), budgets, and incentives — all forms of remuneration, more or less transparent, that you will end up paying, even if you are often unaware of it.
In this regard, always remember to read carefully the Statement of charges and costs that your intermediary (bank or investment firm) is required to send by 30 April each year. Although the document is rather opaque and not easy to read, it will allow you to discover the actual cost of your investments and, above all, that there is no such thing as a free lunch — especially in the world of finance.
4. Freedom of choice and breadth of options
Which financial instruments does an independent financial adviser recommend?
There is no ideal instrument, nor one suited to everyone. It is necessary to understand the client’s needs and objectives. In general, however, independent financial advisers can recommend all financial instruments, with a few specific exceptions, avoiding the most costly or, more precisely, the least efficient ones. In this way they offer the possibility of constructing a sound and, above all, personalised portfolio.
An independent financial adviser may recommend, for example, ETPs (Exchange Traded Products), individual equities, government bonds, corporate bonds and high-yield bonds, certificates and, albeit less frequently, certain domestic and foreign collective investment funds and certain insurance instruments. They can also provide advice on real estate or alternative investments, selecting those that best fit your needs, wishes, and objectives.
It is worth emphasising that the independent financial adviser does not sell products but provides advice.
5. Focus on long-term planning
How to plan for the long term with an independent financial adviser?
Independent financial advisers address not only specific short-term needs but also, and above all, those linked to long-term financial planning, supporting clients in achieving goals such as retirement, the purchase of a home, children’s education, or family risk management.
An independent financial adviser can develop a detailed plan encompassing savings, investments, insurance, real estate, tax optimisation strategies, and succession planning, thus ensuring long-term financial security.
This is a process that necessarily begins with a thorough analysis of the existing asset situation, combined with the client’s needs and objectives. Only after focusing on those aspects that affect the client’s personal and family life can a financial plan be drawn up — one that accompanies the various stages of the client’s existence and evolves continuously in line with the events that will characterise the unfolding of family life, including unforeseen circumstances.
6. A holistic view of the estate
What view of the estate do independent financial advisers take?
Independent financial advisers take a holistic view of the client’s estate. They can manage the entire financial portfolio, even where it is held across multiple banks, ensuring correct diversification across the whole, without the risk of overexposure in certain asset classes, concentration of risk, or issuer concentration. This makes it possible to follow a single coherent strategy aimed at achieving the client’s objectives.
For example, an independent financial adviser could recommend a financial instrument to offset capital losses accrued at one bank, while adjusting the asset allocation at other banks to keep the original investment strategy balanced. This is only possible because they have a complete view of your portfolio. Furthermore, the independent financial adviser also takes into account your non-financial assets — all with a view to the total management of your estate.
7. Greater trust and a personal relationship
How to find a trustworthy independent financial adviser?
Building a relationship of trust is fundamental. Independent financial advisers work closely with their clients, offering a personalised service and forging lasting relationships founded on trust, professionalism, and impartiality.
Having fewer clients than advisers at banks and networks (formerly financial promoters) or bank employees, an independent financial adviser can devote more time and attention to each client, ensuring more in-depth and targeted support. Independent financial advisers can be found in the section for Autonomous (or Independent) Financial Advisers, which can be consulted on the Register supervised by the Supervisory Body and Keeper of the Single Register of Financial Advisers (known in Italy as OCF). Verify their professionalism, their educational background, and any qualifications they hold.
8. Adaptability and flexibility
Are independent financial advisers flexible?
Independent financial advisers are extremely flexible in responding to clients’ evolving needs, adapting investment and planning strategies in accordance with personal circumstances and market conditions.
If your circumstances change — for example, a new professional opportunity, a change in family situation, or an inheritance received — an independent financial adviser, unconstrained by budgets or commercial pressures, can swiftly review and update your financial plan so that it best reflects the new conditions.
9. Support in complex decisions
How to make complex financial decisions?
Financial decisions can be complicated, but an independent financial adviser provides the necessary support to understand the various options available and to make informed decisions.
Whether you need to plan a succession, manage an inheritance, or choose between different investments, an independent adviser will provide clear and impartial advice, helping you to navigate financial complexities with confidence.
10. Integrated planning services
What services does an independent financial adviser offer?
In addition to investment management, independent financial advisers offer integrated advisory services encompassing risk management and insurance planning, tax planning, real estate planning, debt management, and succession planning, as well as advice on investments in art, collectibles, luxury goods, and precious metals.
An independent financial adviser can, for example, help you to optimise your tax position, manage family wealth, and plan the transfer of assets to the next generation, providing a holistic approach to your financial situation.
Conclusion
Until a few years ago, the term “financial adviser” was little known. There was the financial promoter — the person who promoted the products and services of the bank or network they worked for. From 2018, this definition was changed to “financial adviser authorised for off-premises solicitation.”
Nevertheless, the remuneration structure for this figure has remained unchanged, still based on commissions generated by the products proposed, incentives for placing one product rather than another, and bonuses for meeting budgets. These costs are almost always borne by the client, who is often unaware of the hidden charges associated with their investments.
Also in 2018, the Register of Financial Advisers (OCF) formally recognised the figure of the Autonomous (or Independent) Financial Adviser.
Although belonging to the same Register and apparently similar, the Authorised Off-Premises Solicitation Financial Adviser and the Autonomous (or Independent) Financial Adviser are two profoundly different professions — so much so that they are divided into two entirely distinct and separate sections of the Register.
Unlike advisers tied to banks or networks, the independent financial adviser can offer many advantages, among which perhaps the most important are transparency and impartiality. An independent financial adviser is paid directly by you with a clearly defined and transparent fee, with no hidden costs — but above all, they work exclusively in your interests, without conflicts of interest with banks or insurance companies, and therefore without commercial pressures.
Although for some time certain banks and networks have been offering a paid advisory service, known as “advanced” or “evolved” advice, this service remains confined to the perimeter of products placed and distributed by the bank — a hybrid service which, in some cases, merely increases costs for the client.
In conclusion, whether you wish to protect and enhance your existing wealth or build it from scratch, with impartial advice and a personalised strategy, choosing an independent financial adviser could be the ideal solution for you.