Money is an important and essential part of our lives. It's imperative then that we treat it as such. Before deciding on your Financial Advisor, it's a good idea to make sure you know what to expect.
Here are five questions you should ask any potential financial advisor.
1. Is your Financial Advisor an Independent or Restricted Advisor?
We state on the advisors profile page whether they operate as an Independent Financial Advisor, Restricted-Whole-of-Market Advisor or a Restricted Advisor. Transparency is one of the fundamental cornerstones of hiring a Financial Advisor. They should be open and upfront with you at all times and should confirm their status. The advisor must also explain to you exactly how their advice is restricted. If you're not sure about this, then it's important to ask. All advisors are qualified exactly the same.
Independent Financial Advisor
- Access to all products within the market in all advice areas.
- Access to all products within a specific advice area, such as pension advice.
- Limited range of products.
2. If your Financial Advisor is not independent, does this matter?
If your financial advisor has preferential rates with X, Y and Z then they could potentially offer some great rates. However, this may also mean they are unable to offer you other potentially lucrative deals because of their affiliations. But there's nothing wrong with having restricted advice as most Independent Financial Advisors, in reality, only work with a select range of products.
Infact, many of the largest firms or networks now operate on a restricted basis as it streamlines and simplifies the compliance process. You may also have higher levels of protection with a Restricted Advisor should something go wrong as you are typically dealing with a large network.
3. How much is this going to cost?
All Financial Advisors are obliged by law to disclose their fees. These fees can take a number of forms. Some Financial Advisors charge a fixed hourly rate, others prefer a flat fee and there are also those who will take a percentage of the investment or pension fund size. Because of the latter, it's not also possible to predict exactly how much the final sum might be, but your Financial Advisor should be able to give you a reasonable estimate. If in doubt then perhaps look elsewhere.
4. Have you successfully helped someone like me?
No two clients are identical, but patterns exist everywhere in life. If your Financial Advisor has successfully helped someone else in a similar position, then they could be a great match.
5. Are you qualified to help me?
It might sound obvious, but it's often the simple details we forget. By law, All Financial Advisors are required to hold at least a QCF Level 4 certificate. Many of them will hold higher qualifications, but you may want to check that they at least meet the standard. Regulated Advice will only list details of a suitably qualified advisors that are listed on the Financial Conduct Authority (FCA) register. We provide FCA reference numbers to all of our advisors.
Our platform is a comparison service for finding Financial Advisors and allows people to compare and review their opinion on Financial Advisors. Regulated Advice is a trading name of RMT Group (UK) Ltd. Registered Office: 5th Floor, 22 Eastcheap, London EC3M 1EU. RMT Group (UK) Ltd is a company registered in England and Wales, number: 08452090. VAT number: 185662480.