Guide to Getting Financial Advice

What you should do before, during and after the advice interview?

It can be difficult to select an appropriate independent financial adviser (IFA). How do you choose one? The table below suggests what you should consider to ensure you get the best from an adviser.

Also see our article Why you should choose a Certified Financial PlannerCM Professional
and What does Chartered Financial Planner and Chartered Financial Planners mean?
Why is ISO22222 important?

What to do
Shop around	For a list of advisers in your area visit www.unbiased.co.uk or your telephone directory as not all IFAs have websites. Ask your friends or family to recommend an adviser. Also check that the qualifications that the adviser holds are appropriate and relevant to the area of advice that you are looking for.
Regulation	Check the firms you contact are authorised by contacting the FSA Consumer Contact Centre or by using the FSA Firm Check Service.
Arranging a meeting	When arranging the meeting, get the name of the adviser you will be seeing, and check if this will be the same person you see for subsequent meeting. Where do you want the meeting to be held? At your home or in the advisers’ offices? What are the advisers’ qualifications – are they qualified to give you the advice you need in the area you want?
How will the company be paid?	Does the company offer fees/fee offset or commission? How will the level of commission be communicated to you? If you wish to work on fees/fee basis, what is their hourly rate/project rate? If you are asked to pay a retainer, what are you going to get for that money? If you sign a letter of authority will they receive “trail commission” from your products, and if so will this be used to pay your retainer? Do they offer a commission offset?
Before you visit the adviser	Prepare for the meeting – for example, think about your financial aims, and gather information that the adviser will need to know about you, your family, attitude towards risk, income, tax, existing financial products, and so on. Decide whether you want advice about your financial affairs as a whole, or whether you want advice on one particular area; pensions or life insurance for example.
On first contact	Read the documents you are given about the advisers' services. Pay particular attention to those which carry the   logo – they give you important information that the FSA requires your adviser to tell you.
During the advice session	Take notes during the session. Ask questions about anything you don’t understand. Don’t sign anything unless you have read and understood it. Don’t be pressurised into signing up for anything on the spot.
Questions to ask your adviser about recommended products	Does this product meet my needs? What are the charges and how are they paid? How do the charges compare with those for similar products? Overall, is this the best deal I can get? If there are regular payments, what happens if I can't keep them up? How long will it take for the recommendation letter to be sent to me? Specific questions for Investments: What happens if I need my money earlier than planned? Are there any penalties? What is the tax position? What are the risks?
After your session	Read the documents you are given, especially those which carry the keyfacts logo. Finally, what did you think of the adviser you saw? Can you work with them as you are committing to a long term relationship?

Please note that this is for information and guidance only.