Independent Financial Advisory
Independent Financial Advisory
From the United States to Italy
Advisory services tailored to the individual, their goals, and their assets. Independence defines how recommendations are formulated, how compensation is structured, and how potential conflicts of interest are managed.
The meaning of independence
The client at the heart of decision-making.
Independent financial advisory offers personalized investment recommendations based on the client's specific situation: assets, knowledge and experience, goals, time horizon, capacity to absorb losses, and risk appetite. The service helps evaluate financial instruments, costs, and alternatives within a coherent framework.
In the model used by independent financial advisors and Independent Financial Advisory Firms (SCFs), compensation is paid exclusively by the client via an agreed-upon fee. The advisor receives no commissions or incentives from the entities that produce or distribute the recommended instruments; this is the fee-only model..
Advisory services remain separate from asset custody and trade execution. Clients keep their assets with their chosen intermediaries and decide whether to implement the recommendations. Independence also requires procedures to identify, prevent, and manage potential conflicts of interest.
- Personal goalsRecommendations are based on the client's needs and constraints.
- Transparent compensationThe fee covers the advisory service, with no commissions on product sales.
- Analysis of alternativesThe costs, risks, and characteristics of the instruments are evaluated within the context of the client's assets.
- Control of resourcesThe client retains control over their assets and responsibility for decisions.
A professional and regulatory journey
From the United States to Italy.
Financial planning and advisory services fee-only model. share a connected history but are not the same: the former describes a professional process, while the latter identifies a remuneration model.
1969 · USAChicago: the roots of modern financial planning.
1973 · USAThe first CFP-certified professionals.
1983 · USANAPFA, the association for fee-only advisors, is founded.
2005 · ItalyNAFOP, the association for independent advisory services, is founded.
2007 · ItalyThe Consolidated Law on Finance (TUF) recognizes individual advisors under Art. 18-bis.
2018 · ItalyFull operational status of the Unified Register and the OCF.
1969–1973 · American roots
From individual products to a comprehensive vision.
On December 12, 1969, in Chicago, thirteen professionals met to discuss a more integrated approach to providing financial assistance. The key shift was considering the individual's various needs holistically, moving beyond a fragmented view of financial services.
Training structures and professional standards emerged from this process. In 1973, the first 42 professionals received CFP certification. Financial planning thus acquired a more clearly defined professional identity. Certification attests to competence and conduct requirements; it does not, in itself, define a compensation model. fee-only model..
1983 · The fee-only model
A fee for professional advice.
NAPFA (National Association of Personal Financial Advisors) was founded in the United States in 1983. The association brought together professionals who sought to build client relationships without remuneration linked to the sale of financial products.
The model fee-only model. separates payment for advisory services from product placement commissions. NAPFA links this model to a fiduciary commitment: acting in the client's best interest, disclosing potential conflicts of interest, and upholding professional standards. This approach also became a benchmark for the development of independent advisory services outside the United States.
References: NAPFA: history and identity · fiduciary commitment.
2005–2007 · Development in Italy
A profession seeking recognition.
In Italy, independent advisory services developed through the work of professionals who chose to work on a fee-only basis for the client. NAFOP (National Association of Fee-Only Planners) was established in 2005 to advocate for the recognition and adoption of this model.
During the process of transposing the first MiFID directive, Legislative Decree no. 164 of 2007 introduced Article 18-bis into the Consolidated Law on Finance, specifically addressing individual financial advisors. This was a significant regulatory milestone, distinct from the subsequent full operational launch of the official Register; a long transition period elapsed between legislative recognition and the establishment of the operational framework.
References: NAFOP: Our History · Consob: 2008 Report.
2014–2018 · The European Framework
Independence becomes an explicit distinction.
The 2014 MiFID II directive reinforced the distinction between advice provided on an independent basis and non-independent advice. For independent advice, it requires the assessment of a sufficiently broad and diversified range of instruments and limits the acceptance and retention of fees or benefits from third parties.
The European concept relates to the characteristics of the service and can also apply to advice provided by authorized intermediaries. The Italian model of independent advisors and independent financial advisory firms (SCFs) combines these requirements with a specific professional structure based on independence and client-based remuneration.
Reference: Directive 2014/65/EU, Article 24.
From December 1, 2018
A Register and a supervisory system.
With Consob Resolution no. 20704 of November 15, 2018, the Single Register of Financial Advisors and the supervisory and registry-management body (OCF) became fully operational as of December 1, 2018. The system comprises sections for advisors authorized to offer services off-premises, independent financial advisors, and financial advisory firms.
For the client, registration in the correct section serves as an essential reference point for verifying the professional they are engaging. The relationship must clearly define the scope of service, remuneration, analysis methods, and planned verification activities. Independence thus translates into verifiable professional requirements, conduct rules, and accountability.
References: Consob Resolution no. 20704/2018 · NAFOP: definitive launch of the Register.
TM & PARTNERS SCF
Independence, methodology, and accountability.
TM & PARTNERS SCF S.r.l. is registered in the Financial Advisory Firms section of the Single Register pursuant to OCF Resolution no. 1034 of February 27, 2019. Our work begins with a comprehensive assessment of the client's assets and links objectives, investments, risks, and costs through a documentable process.
The fee paid by the client constitutes the sole remuneration for the advisory service. Assets remain with the intermediaries chosen by the client, who retains the freedom to implement the recommendations. Analysis and reviews are conducted within an agreed scope, with clearly defined responsibilities and a transparent relationship.