Whether you’re in your mid-20s or nearing your retirement years, planning your financial future is crucial. Seeking expert help will make even the biggest financial decisions less intimidating and overwhelming. As such, expert financial advisors can help you tackle investment strategies, retirement planning, and more.
Independent Financial Advisers (IFAs) in Singapore have emerged as a preferred choice, offering unbiased guidance as they are not tied to any specific financial institution’s products. The term “independent” offers a sense of impartiality, as they are not tied to any financial institutions. This allows them to focus on the client’s best interests rather than pushing specific financial products.
But how do you know if a financial adviser is independent? This largely depends on the advisor’s affiliations and the range of products they offer. Look for registered advisors who declare themselves as independent, and cross-verify this with the Monetary Authority of Singapore’s Financial Institutions Directory.
What Is an Independent Financial Advisor Singapore?
Financial Advisors provide expert financial advice as well as create comprehensive plans to help you in managing your assets, investments, and overall financial health. As previously mentioned, independent advisors are not affiliated with any specific company, allowing them to provide unbiased financial advice.
They can objectively analyze the whole range of financial products from different insurers, banks, and asset managers. Additionally, their services extend beyond insurance to include advice on investment products like unit trusts, as well as retirement planning services.
The largest IFA firm in Singapore is Financial Alliance Pte. Ltd which is a multi-awarded financial advisory firm. They offer individual and corporate financial advisory.
How much do financial advisors charge in Singapore?
IFAs in Singapore usually operate on an assets-under-management (AUM) model. This means that the fees are based on a percentage of the total investments they manage for you. The rates typically range between 0.5% and 1%. This fee ensures that the advisor’s interests align with yours – as your portfolio grows, so does their compensation.
Note that this fee can also accompany other fees, including consultation fees, investment fees, sales charges, and performance fees. That said, it’s best to discuss the charges with the financial advisor before making a decision.
Independent Financial Advisor vs Financial Adviser
| Criteria | Independent Financial Advisor (IFA) | Financial Advisor |
| Affiliation | IFAs are not affiliated with any specific financial institution or company. They can recommend a variety of products from different insurers, banks, and asset managers. | Financial Advisors may be tied to a specific financial institution or company and recommend products from their portfolio. |
| Range of Products | They offer advice on a broad range of financial products across the market from various companies. | They may only offer advice on products provided by the company they’re tied to. |
| Fee Structure | IFAs typically charge a fee based on a percentage of the assets they manage, ranging from 0.5% to 1%. | Financial Advisors may earn a commission from the products they sell, which could potentially influence their recommendations. |
| Unbiased Advice | As they are not obligated to promote products from a particular company, IFAs can provide unbiased advice tailored to the client’s needs. | Tied advisors may have a bias towards the products and services offered by their respective companies, which could potentially affect the advice they give. |
| Services | Services may include retirement planning, asset management, investment products like unit trusts and more. | The range of services might be limited to the financial products and services their respective company offers. |
Guidelines on the Use of the Term “Independent” by Financial Advisers
The Monetary Authority of Singapore (MAS) has a set of guidelines, controlling the use of the term “independent” by financial advisory firms. This helps in regulating financial services and insurance in Singapore.
According to MAS guidelines, FAs can only use the term “Independent” to describe their services if:
- They do not receive any commission or other benefits from a product provider.
- If the FA firm operates free from any direct or indirect restriction relating to any investment product which is recommended; and
- If the FA firm operates without any conflict of interest created by any connection to or association with any product provider.
Factors to Consider When Choosing an Independent Financial Adviser
There are plenty of financial advisory firms in Singapore. It is completely understandable to feel overwhelmed and intimidated to take the first step. While it is important to choose a financial adviser with whom you feel comfortable discussing your financial situation, there are also other important factors you should consider.
- Experience and Qualifications: Assess the IFA’s experience in the financial industry, including their areas of expertise and the types of clients they typically work with. Most importantly, look at their qualifications and make sure that they are licensed by the Monetary Authority of Singapore.
- Financial Institutions Directory: Check if the IFA is authorized by MAS to provide financial advisory services.
- Register of Representatives: Check here to see if the IFA you are talking to is a financial advisor representative
- Fees and Charges: Understand the IFA’s fee structure. Most independent financial advisors operate on a fee-based structure. But how are these fees calculated? Understanding the costs and fees involved will help you avoid any hidden charges and ensure that the services are within your budget.
- Range of Services Offered: What are your financial goals? Does the IFA offer the financial services you need? Can they provide comprehensive financial planning, including retirement planning, investment advice, and estate planning? The wider the range of services, the more likely they can cater to your varying financial needs.
- Client Reviews and Testimonials: Don’t forget to read reviews and testimonials from previous clients. In doing so, you can gain insights into the IFA’s work ethic, professionalism, and ability to deliver results. Also, consider any negative reviews or complaints and how they were addressed.
Top 7 IFAs in Singapore
1. Financial Alliance
Established in 2002, Financial Alliance is Singapore’s largest independent financial advisory firm. The firm provides a comprehensive suite of financial products and services that are designed to cater to the unique needs of both individual and corporate clients.
Financial Alliance boasts a strong commitment to unbiased advice and financial education. It houses a large team of highly qualified professionals who offer a wide spectrum of financial instruments, covering aspects like wealth management, estate planning, and corporate solutions.
Contact Info
- Address: 150 Beach Road #12-01/08, Gateway West Singapore 1897205
- Phone: +65 6222 1889
- Website: https://fa.com.sg/
- Social Media: Facebook
2. Providend
Providend, founded in 2001, is Singapore’s first fee-only independent financial advisory firm. They are dedicated to providing comprehensive financial planning services, including risk mitigation planning, wealth management, investment management, and estate planning. They serve a wide range of clientele, including individuals, families, and businesses.
With its fee-only model, it underscores its commitment to transparency and objectivity. Instead of earning commissions on product sales, they charge a flat fee for their services, ensuring that their advice is unbiased and entirely in the clients’ best interests. Additionally,, Providend’s team of experienced advisors and strong track record add to its reputation as one of the top independent financial advisory firms in Singapore.
Contact Info
- Address: No.38 Duxton Hill, Singapore 089616
- Phone: +65 6309 2488
- Website: https://providend.com/
- Social Media: Facebook
3. IPP Financial Advisers
IPP Financial Advisers was established in Singapore in 1983, making it one of the region’s longest-established Independent Financial Advisory firms. The company offers a wide array of services encompassing wealth planning, financial planning, insurance advice, and retirement planning for both individuals and corporations.
One of the key highlights of IPP Financial Advisers is their longevity and depth of experience in the financial advisory field. Additionally, they are renowned for their comprehensive approach to financial planning, incorporating international financial products and expertise to serve the diverse needs of their clients, be it for protection, accumulation, or distribution of wealth.
Contact Info
- Address: IPP Financial Advisers Pte Ltd 78 Shenton Way #30-01 Singapore 079120
- Phone: + 65 6511 8888
- Website: https://www.ippfa.com/business-advisory/
- Social Media: Facebook
4. PromiseLand Independent
Founded in 1986, PromiseLand Independent offers a comprehensive range of financial advisory services. In 1991, this financial advisory firm became the first independent life insurance broker in Singapore, offering products from the majority of life insurance companies. Today, they are committed to providing a broad range of services, including insurance planning, retirement planning, estate planning, investment advisory, and more.
PromiseLand Independent is dedicated to providing holistic and unbiased financial advice. They operate on a client-centric approach where the needs and interests of the client take precedence. Additionally, this independent financial advisory firm partners with a wide range of product providers to provide clients with the best financial advice and financial products.
Contact Info
- Address: 7500A Beach Road, #02-312, The Plaza, Singapore 199591
- Phone: +65 65054100
- Website: https://promiseland.com.sg/
- Social Media: Facebook
5. Pinnacle Wealth Advisory
Pinnacle Wealth Advisory is led by a team that deeply believes in the power of financial literacy. The firm was built on the founding director’s vision of a team committed to righting financial wrongs for families facing tough starts, much like her own. Christina and her team of advisors focus on providing personalized and competent advice across the many areas of financial planning.
At Pinnacle Wealth Advisory, creating customized financial planning for their clients is an utmost priority. As such, in-depth financial planning consultations with the team are done over 3 to 5 meetings with a duration of 1.5 to 2 hours each. On top of that, they also provide fee-based planning, ensuring unbiased advice.
Contact Info
- Address: 150 Beach Road #12-01/08 Gateway West Singapore 189720
- Phone: +65 8288 0854
- Website: https://www.pinnaclewealth.sg/
- Social Media: Facebook
6. SingCapital Pte Ltd
Boasting over 15 years of experience, SingCapital Pte Ltd has established an exceptional reputation for delivering comprehensive and customized financial advice to clients. They serve a broad range of clientele from individuals to corporations. Some of their financial services include protection planning, investment planning, estate planning, business loan and business insurance, and more.
One of the key highlights of this independent financial advisory firm is its free personal financial health check. You can avail of this when you complete the online interest indication firm. Best of all, the firm is also an advocate for financial literacy.
Contact Info
- Address: 60 Paya Lebar Rd, #09-01 Paya Lebar Square, Singapore 409051
- Phone: +65 6801 4088
- Website: https://singcapital.com.sg/
- Social Media: Facebook
7. Global Financial Consultants (GFC)
First established in Sydney, Australia in 1977, Global Financial Consultants (GFC) have decades of experience and is now a trusted licensed financial advisory firm in Singapore. The firm offers a broad range of services including savings and investment solutions, wealth management, retirement planning, and insurance solutions to both individuals and businesses – local and international clients .
This independent financial firm is renowned for its international expertise, drawing on global financial strategies to meet the needs of its diverse clientele. With a firm commitment to impartiality and professionalism, GFC ensures that its clients receive unbiased advice that is thoroughly tailored to their unique financial circumstances.
Contact Info
- Address: 14 Robinson Road, #10-01 Far East Finance Building, 048545
- Phone: +65 6532 2711
- Website: https://www.gfcadvice.com/
- Social Media: Facebook
Benefits of Working with an Independent Financial Adviser
1. Objective and Unbiased Financial Solutions
IFAs are not connected with any specific financial institution or company. As such, their recommendations are not influenced by a need to sell certain products for higher commissions. That said, they can provide you with a broader range of financial products and different strategies to suit your unique needs.
2. Personalized Financial Planning
They are capable of providing customized financial plans and solutions that are tailored to your unique financial situation, goals, and risk tolerance. This gives them more flexibility that you might not get with a financial adviser tied to a specific company.
3. Wide Range of Financial Services
IFAs typically offer a broader range of financial services and products compared to other financial advisors. These services often include retirement planning, estate planning, wealth management, insurance advice, and more. This means you can get a comprehensive financial plan that covers all aspects of your financial goals.
Closing
Experienced and reputable independent financial advisors in Singapore can provide you with unbiased financial advice to help you reach your goals. The list above will help you get started on your financial journey as these IFA firms have a broad array of financial services, including retirement planning, investment strategies, and wealth management.
Key Takeaways:
- IFAs are not tied to any specific financial institution; thus, they are not motivated by commission fees, leading to unbiased solutions when offering financial products.
- The fees for IFAs in Singapore typically range between 0.5% and 1% of the investments they manage. This aligns the advisors’ interests with yours, as their compensation grows as your portfolio grows.
- When choosing an IFA, consider their experience and qualifications, their fee structure, the range of services they offer, and client reviews and testimonials. These elements will help ensure you select an IFA that meets your specific financial needs and circumstances.
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