Most people don’t spend much time thinking about how their financial adviser is regulated. That’s completely understandable. What matters is that you trust the person giving you advice, and that you feel confident the recommendations you receive are genuinely in your interests.
But two things have happened recently that are worth knowing about. The number of directly authorised financial advisers in the UK has fallen sharply over the last five years. And this month, Baggette + Co. has renewed our Chartered status for the 14th consecutive year.
Taken together, they tell a story about what separates good financial advice from great financial advice, and what you should be looking for when you choose who to trust with your financial future, whether you are based in Poole, Bournemouth, or anywhere across Dorset and Hampshire.
Key Takeaways
- The number of directly authorised (DA) wealth advisory firms in the UK has dropped by around 20% since 2020.
- Applications for direct authorisation have fallen by 75% over the same period, meaning genuinely independent financial advice is becoming harder to find.
- Directly authorised firms like Baggette + Co hold their own FCA permissions and answer directly to the regulator, with no network layer in between.
- Chartered status, awarded by the Chartered Insurance Institute, means a firm commits publicly to exceeding minimum professional standards each year, not just once.
- Baggette + Co has held Chartered status for 14 consecutive years. Both the firm and a number of our individual advisers are Chartered.
- Fee transparency matters too. Knowing exactly who pays your adviser, and whether any commercial arrangements could influence their recommendations, is a question worth asking.
- Knowing what these standards mean, and asking the right questions, can make a real difference to the quality of financial advice you receive.
What does “directly authorised” actually mean?
When a financial adviser or firm is directly authorised, it holds its own permissions from the Financial Conduct Authority (FCA). That means it answers directly to the regulator for every piece of advice it gives.
The alternative is to operate as an appointed representative (AR), sitting under a network’s regulatory umbrella. Networks are legitimate, and many do a good job. But the structure is different. An appointed representative operates under someone else’s permissions, not their own.
For anyone looking for an independent financial adviser in Poole, Bournemouth, or the wider Dorset and Hampshire area, the practical difference often comes down to one thing: independence.
A directly authorised, whole-of-market independent financial adviser can recommend any product from any provider on the market. Their recommendations are shaped entirely by what suits the client.
Some network-based advisers work similarly. But networks can, in some cases, carry panel restrictions, preferred provider arrangements, or commercial relationships that shape what gets recommended. It doesn’t mean the advice is bad. It does mean it’s worth asking the question.
Why are there fewer directly authorised firms than there used to be?
Research by Network Consulting based on a Freedom of Information request submitted to the FCA, reveals that the number of directly authorised wealth advisory firms in the UK has fallen by around 20% since 2020. The FCA’s response to that request is published on the FCA website.
Perhaps more striking is this: the number of new applications to become directly authorised has dropped by 75% over the same period.
The reasons are varied. Regulatory requirements have increased significantly. Consumer Duty has raised the threshold for what good financial advice looks like and how it must be evidenced. Some firms have found that the operational and compliance burden of direct authorisation has grown to the point where joining a network feels more manageable.
None of that makes the network model wrong. But it does mean that the pool of firms choosing to carry the full weight of direct authorisation is getting smaller. For anyone searching for a genuinely independent financial adviser in Dorset or Hampshire, that matters.
What is Chartered status, and why does it matter?
Direct authorisation sets a foundation. It means a firm meets the FCA’s regulatory requirements and is held directly accountable for the financial advice it gives.
Chartered status, awarded by the Chartered Insurance Institute (CII), sits separately from that. The CII describes it as a public declaration of commitment to professional standards, covering ongoing people development, an ethical code, and a customer-first approach that goes beyond regulatory compliance (https://www.cii.co.uk/membership/join-us/chartered/corporate-chartered/why-become-chartered/).
What is the Chartered Insurance Institute?
The Chartered Insurance Institute (CII) is the professional body for the insurance and financial planning profession in the UK. It awards Chartered status to firms and individuals who meet its criteria for professional standards, ethics, and ongoing development.
Crucially, it is not a qualification you earn once and keep for life. Chartered firms must renew their status each year, actively demonstrating that they continue to meet the CII’s criteria. It means a firm has made an annual, public commitment to its clients and to the profession, not because it has to, but because it believes that is the right way to operate.
For clients across Dorset and Hampshire looking for a Chartered independent financial adviser, this distinction is worth understanding.
What does 14 years of Chartered status tell you about a firm?
Achieving Chartered status once takes effort. Renewing it for 14 consecutive years tells you something more.
It means the commitment is embedded. It is not a marketing badge earned during a period of rapid growth and left to gather dust. It is a standard the firm actively chooses to uphold every year, regardless of what is happening around it.
At Baggette + Co, both the firm and a number of our individual advisers hold Chartered status. That means the commitment runs through the organisation, not just the company name above the door.
In a market where directly authorised independent financial advisers are becoming less common and the bar for entry is rising, choosing to maintain both direct authorisation and Chartered status year after year is a deliberate choice about the kind of firm we want to be.
Does it matter which type of firm I use?
It depends on what you are looking for.
If your priority is access to genuinely independent, whole-of-market financial advice, from a firm that is directly accountable to the FCA and has publicly committed to exceeding professional standards, then yes, both things matter.
A directly authorised firm has chosen to carry full regulatory responsibility itself. A Chartered firm has chosen to go further still. Together, they represent a level of accountability and commitment that is worth looking for when choosing a financial adviser in Poole, Bournemouth, or across Dorset and Hampshire.
There is also no intermediary between you and the regulator. If you have concerns, your route of escalation is clear.
At Baggette + Co., we have chosen the directly authorised route.
Should I ask my financial adviser how they are paid?
Yes. And a good adviser will welcome the question.
For us, this is not just a compliance matter. It sits at the heart of what trust and integrity actually mean in practice. Transparency about money — specifically about who pays us and why — is not something we bolt on at the end of a conversation. It is how we operate, because we believe that a client who fully understands how their financial adviser is remunerated is a client who can trust the advice they receive.
How an adviser is paid matters because it shapes, consciously or not, where their interests lie. If a firm benefits financially from placing clients with a particular platform or provider, that is worth knowing. It does not automatically mean the advice is wrong. But it does mean the potential for conflict exists.
At Baggette + Co, our fees are paid by our clients and only by our clients. We do not receive payments from investment providers or platforms in return for recommending them. Whether your money is placed with one provider or another makes no commercial difference to us. Our only interest is in finding the most suitable solution for you.
Where we do receive rebates from platforms or investment providers, those amounts are passed back to clients in full. Not retained. Not absorbed. Returned to the people they belong to. That is what genuine transparency looks like.
The one area where this works slightly differently is protection, such as life insurance or income protection. Commission from protection providers is standard practice across the industry. What matters is that our commission structure is set out clearly in advance, and we have no preferential financial arrangement with any provider that could influence our recommendations.
We are happy to walk any client or prospective client through exactly how we are paid, before any commitment is made. If your current adviser has not had that conversation with you, it is a reasonable one to ask for.
How can I check whether my financial adviser is directly authorised or Chartered?
You can check any UK financial adviser or firm on the FCA Register at register.fca.org.uk. It is free, takes about two minutes, and will tell you exactly how a firm is authorised and what permissions it holds.
You can verify whether an individual or firm holds Chartered status through the Chartered Insurance Institute at cii.co.uk.
You are also entitled to ask your adviser directly. A good firm will be happy to explain how they are regulated, whether they are Chartered, and what both mean in practice for the financial advice you receive.
Frequently Asked Questions
Not automatically. Good financial advice comes from qualified, experienced people who listen carefully and recommend what is right for you. The regulatory structure is one factor to consider, not the only one. What it does affect is the breadth of the market an adviser can access, and where accountability sits.
Whole-of-market means an independent financial adviser can search across all available products and providers to find the most suitable option for your needs. They are not limited to a panel of preferred providers. For more complex financial planning, this can matter considerably.
Consumer Duty is a set of standards introduced by the FCA that requires financial firms to demonstrably act in the best interests of their clients. It raises the bar for what good financial advice looks like and places greater obligations on firms to evidence that their recommendations are suitable. It applies to all authorised firms.
Ask them directly. Ask whether they are restricted or independent, and whether there are any providers or product types they are unable to recommend. An independent financial adviser will be transparent about this.
Yes. Ask whether they charge fees directly to you, whether they receive any payments from product providers or platforms, and whether any rebates are retained by the firm or returned to clients. Understanding the answer helps you assess whether any commercial arrangements could have a bearing on the recommendations you receive.
Finding financial advice you can genuinely trust takes more than a Google search. Knowing what questions to ask and what the answers actually mean makes all the difference.
Baggette + Co. is a directly authorised, Chartered independent financial advisory firm based in Poole. We have held Chartered status for 14 consecutive years, both as a firm and through a number of our individual advisers. We hold our own FCA permissions, search the whole market for the most suitable solutions, and have no network arrangements or panel restrictions shaping what we recommend. Our fees are paid by our clients, and only our clients, and any rebates we receive from platforms or providers are returned in full.
If you would like to understand more about how we work, or simply want to talk through what genuinely independent financial advice looks like in practice, we would be happy to have that conversation. There is no pressure and no obligation. Speak to Oscar Hjalmas today: 01202 676 983 / [email protected]
Baggette + Co. is a directly authorised firm regulated by the Financial Conduct Authority. This article is intended for general information purposes only and does not constitute personal financial advice. Your circumstances are individual to you, and any decisions about your financial arrangements should be made with the benefit of regulated, personal advice.