How to Tell If Your Financial Advisor Is Truly Providing Unbiased Advice
Choosing a financial advisor is not just about credentials or how confident someone sounds. It is about trust, alignment, and whether the advice you receive is genuinely centered on you—not the advisor’s company, commissions, or personal preferences.
In Singapore, financial advice is widely accessible. You may meet advisors through referrals, seminars, roadshows, or even social media. Many are sincere professionals. However, consumers often only realise years later that the advice they received was biased, limited, or unsuitable for their actual needs.
This article will help you identify the signs of a good financial advisor—one who provides unbiased, client-first advice—through practical explanations and relatable stories.
The 6 things you should look out for:
- Check If They Are Working With a Tied or Multi-Platform Agency
- Do They Offer Portfolios That Match Your Risk Profile?
- Do They Provide Professional Rebalancing and Ongoing Monitoring?
- Do They Listen Before They Recommend Anything?
- Are They Transparent About Risks, Fees, and Trade-Offs?
- Do They Encourage Comparison and Informed Decisions?
1. Check If They Are Working With a Tied or Multi-Platform Agency
One of the most important, yet least understood, aspects of financial advice is who the advisor represents.
Relatable Story
A couple in their early 30s met a friendly advisor recommended by a colleague. During the first meeting, the advisor confidently presented a solution for insurance and investments—all from the same company. When the couple asked if there were other options to compare, the advisor explained that this plan was “the best in the market” and there was no need to look elsewhere.
Later, the couple met another advisor who explained that the first advisor was from a tied agency and could only recommend products from one insurer. When they compared options across multiple providers, they realised there were alternatives from multi-platform agencies with lower costs and more suitable features for their needs.
The first advisor may not have been dishonest—but the advice was structurally limited.
Why This Matters
- Tied advisors represent one financial institution and can only offer its products
- Multi-Platform advisors can compare solutions across multiple companies
Unbiased advice is easier to deliver when the advisor is not restricted to a single provider. While tied advisors can still offer good service, consumers should understand the limitations upfront.
2. Do They Offer Portfolios That Match Your Risk Profile?
Every individual has a different tolerance for risk. Good financial advice starts with understanding this properly.
Relatable Story
A 28-year-old professional with stable income and no dependents was advised to invest aggressively because “you’re still young.” The advisor assumed that age automatically meant high risk tolerance.
Within months of market volatility, the client became anxious and started checking their portfolio daily. Eventually, they exited the investment at a loss—not because the strategy was wrong in theory, but because it did not match their emotional comfort level.
In contrast, another advisor later took time to assess not just age, but lifestyle, savings habits, and emotional response to losses. The revised portfolio had slightly lower risk—but the client stayed invested comfortably over the long term.
Why This Matters
A good financial advisor:
- Does not assume your risk profile
- Uses structured assessments
- Explains trade-offs clearly
- Builds portfolios aligned with your comfort level
Unbiased advice means the advisor separates their own money personality from yours and avoids pushing strategies that suit them more than you.
3. Do They Provide Professional Rebalancing and Ongoing Monitoring?
Financial planning is not a one-time event. Life and markets change—and your plan should evolve accordingly.
Relatable Story
A young family invested through an advisor who helped them set up a portfolio and insurance coverage. For the first year, everything seemed fine. After that, communication stopped unless the family initiated contact.
Five years later, their portfolio had drifted significantly from its original risk level due to market movements. The family had also welcomed a second child, increasing financial responsibilities—but the portfolio was never adjusted.
When they finally reviewed their plan with another advisor, they realised their investments were no longer suitable for their life stage.
Why This Matters
Good financial advisors:
- Conduct regular reviews
- Rebalance portfolios as markets move
- Adjust strategies when your life changes
- Monitor risks continuously
Unbiased advice is ongoing, not transactional. Advisors who disappear after implementation are often product-focused rather than planning-focused.
4. Do They Listen Before They Recommend Anything?
One of the clearest signs of a good advisor is how much time they spend listening.
Relatable Story
A self-employed individual attended a first meeting hoping to understand how to stabilise cash flow and plan for retirement. Within 20 minutes, the advisor had already recommended an investment-linked plan.
The advisor never asked about irregular income, business risks, or existing commitments.
Later, the client met another advisor who spent the entire first meeting asking questions—about income patterns, financial stress points, goals, and concerns. No products were discussed until the second session.
The difference was clear: one advisor was selling, the other was planning.
Why This Matters
A good financial advisor will:
- Ask thoughtful questions
- Understand your life stage and responsibilities
- Assess affordability realistically
- Clarify your goals before suggesting solutions
- Avoid rushing into recommendations
If an advisor does not listen at the beginning, they are unlikely to provide advice that truly fits you.
5. Are They Transparent About Risks, Fees, and Trade-Offs?
Unbiased advisors do not oversell and they are transparent about fees upfront. They explain both the upside and the downside.
Relatable Story
An investor was presented with a product promising “attractive long-term returns.” The advisor focused heavily on potential growth but glossed over fees and risks.
Years later, the investor realised that high costs had significantly reduced net returns. When asked, the advisor explained that “all investments have fees,” but had never clearly explained the impact.
Another advisor later took a different approach—laying out:
- best-case scenarios
- worst-case scenarios
- fees in dollar terms
- situations where the plan may not perform well
The client felt more confident, even though the returns were not “promised.”
Why This Matters
Unbiased advisors:
- Explain risks clearly
- Are upfront about fees
- Avoid guaranteed language
- Help you make informed decisions
Transparency is a hallmark of ethical financial advice.
6. Do They Encourage Comparison and Informed Decisions?
Good advisors are confident enough to let you compare.
Relatable Story
A client was told, “This offer is only available this week—if you wait, you might lose the opportunity.” Feeling pressured, they signed quickly.
Later, they discovered similar options with better features that they never had the chance to evaluate.
In contrast, another advisor encouraged the client to take time, compare alternatives, and even speak to other advisors before deciding.
Why This Matters
Unbiased advisors:
- Encourage comparison
- Respect your decision-making process
- Avoid unnecessary urgency
- Support long-term confidence over quick sales
Pressure is often a sign of sales-driven advice.
Conclusion: Evaluate, Compare, and Make an Informed Decision
Choosing a financial advisor is not just about finding someone knowledgeable—it’s about choosing someone who genuinely acts in your best interest.
Take the time to:
- Evaluate the advisor’s company structure
- Understand whether they are Tied or Multi-Platform
- Assess how well they understand your risk profile
- Compare recommendations across providers
- Observe whether they listen before advising
A good financial advisor empowers you with clarity, not pressure.
They help you make decisions you can stay comfortable with—not just today, but years down the road.
And that is the true sign of unbiased financial advice.