Guide · Advice type
Financial advice vs guidance: what is the difference?
Guidance can help you understand your options. Regulated advice goes further by making a personalised recommendation based on your circumstances.
What is financial guidance?
Guidance explains information, options and things to consider without telling you which regulated financial product or course of action is personally suitable for you. Free guidance can be enough when you mainly need clarity rather than a recommendation.
What is regulated financial advice?
Regulated advice considers your personal circumstances and makes a recommendation. Because the adviser is recommending a course of action, regulation, suitability and complaint protections matter.
Which do you need?
I need to understand my optionsGuidance may be a sensible first step.
I want someone to recommend what I should doThat points toward regulated advice.
The decision is complex or difficult to reverseA personalised recommendation may be more valuable.
I am comfortable making my own decisionInformation and guidance may be enough.
Check who is giving the recommendation
If someone is presenting a personalised regulated recommendation, check the adviser and firm before acting on it.
Sources & further reading