What is UK polarization rule?

This is the rule that gives rise to the concept of independent advisor. Basically this is a concept that is popular in U.K. And in reality it means that being independent of any insurer or third party will in the long run ensure that one can recommend products freely from any source. On the other hand it must be kept in mind that the non-independent or the tied advisors represent their respective companies and at the same time there is also the notion of multi-tied adviser who may represent more than one company. . These are basically the agents who are FSA authorized to accept payment from his client by fee rather than by commission; however at the same time they must ensure that this must be outlined in the introductory meeting. But an advisor cannot be called independent if he works only on a commission basis and basically there are some specific regulations in U.K. called polarization rules issued by the Financial Services Authority. The significant fact about this authority is that it is an authority or the FINRA is held responsible for the activities of more than 5,050 brokerage firms. Of all these firms around 172,050 have branch offices and more than 663,050 registered securities representatives in United States which have the licenses that are a must for stock broker and financial advisors. These licenses are basically a must to provide any consultation on investment in securities and in this junction it should also be mentioned that any adviser who charges a fee for investment advice would need to also have the Series 65 or 66 license. Thus it is a must to know that any one or any advisor can call himself a financial planner but not an investment advisor until he is registered and has license; nonetheless it is worth being mentioned that some brokerage firms still claim exemptions. These exemptions are claimed for those employees who are engaged in selling fee based products and services.