Finding an IFA you can trust...

Options
245

Comments

  • xylophone
    xylophone Posts: 44,420 Forumite
    Name Dropper First Anniversary First Post
    Options
    https://www.moneyadviceservice.org.uk/en/articles/key-questions-to-ask-your-financial-adviser

    https://www.unbiased.co.uk/financial-adviser/ifa-qualifications

    might be worth a look.
  • username12345678
    username12345678 Posts: 283 Forumite
    First Anniversary First Post Name Dropper
    Options
    Mine has invited me to dinner to 'meet the directors'.

    I'm almost tempted to keep the relationship with the IFA/WM going to see just what sort of 'freebies' they throw out.
  • HappyHarry
    HappyHarry Posts: 1,588 Forumite
    First Anniversary Name Dropper First Post
    Options
    username12345678 wrote: »
    Mine has invited me to dinner to 'meet the directors'.

    I'm almost tempted to keep the relationship with the IFA/WM going to see just what sort of 'freebies' they throw out.

    I had a client leave a few years ago to an FA who offered "free golf days".

    The client couldn't grasp the concept that it was the increased fees they paid that actually paid for these "freebies".
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • dunstonh
    dunstonh Posts: 116,378 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    edited 12 August 2017 at 12:38PM
    Options
    Dunstonh, thats what I was trying to do. How was I supposed to know they are FAs if their website, vouched for and unbiased all say they are IFAs?

    Vouchedfor and unbiased are lead generation commercial sites. However, the FCA treat listings on those as financial promotions. So, if a firm is misrepresenting its status, then you should complain as it is a regulatory breach. Only IFAs can state they are IFAs.

    Vocuhedfor is an awful site. Damned expensive to use as a business (which you have no choice to pass on costs to the consumer). Unbiased watered down its status to include restricted firms some years ago as long as they are not single tied.

    Most IFA firms I know do not advertise at all. They dont need to and dont want to pay silly money to lead generation style listings. They get more than enough natural business through their local relationships (families, friends of clients, word of mouth etc).
    They all say they cover the whole of market.

    A play on words. A restricted firm is allowed to use the phrase whole of market in areas they do not restrict. For example, they could say that they use one platform but that has access to investments from the whole of market.
    Do I just trawl their websites and ensure it doesnt mention representitive in the small print?

    An IFA will make a point of stating they are independent financial advisers. An FA may try and use marketing speak to give that impression but they must never state they are IFAs or independent. I know of a tied agent who uses the fact he is whole of market on mortgages to give the impression he is whole of market on everything. He never says he is an IFA. He just words it in a way that the person associates whole of market with being an IFA.
    The term IFA is a misnomer. Independent? They are often restricted to one form of investment or another.

    That is incorrect. IFAs are not allowed to have any restrictions. FAs are. It sounds like yours were not IFAs.
    In pub terms they are tied houses not free houses.

    FAs are tied. IFAs are not tied.
    If an IFA has a limited number of funds for you to choose from, <snip>...
    ...then that would mean that they are not an IFA.

    There was some research some years back that found that over half the people seeing an FA actually thought they were seeing an IFA. So, this issue is not new.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 44,420 Forumite
    Name Dropper First Anniversary First Post
    Options
    Unbiased watered down its status to include restricted firms some years ago as long as they are not single tied.

    Some time after this (2008) article appeared?

    http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/3108972/IFAs-How-to-choose-an-Independent-Financial-Adviser.html
  • dunstonh
    dunstonh Posts: 116,378 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    xylophone wrote: »
    Some time after this (2008) article appeared?

    http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/3108972/IFAs-How-to-choose-an-Independent-Financial-Adviser.html

    I would be wary of looking at anything about distribution in 2008. Its pre-RDR. Since then things have moved on a lot. Network models of 30 years have changed massively since then (most have gone restricted or mortgage/insurance only). The commission ban, the tighter definition of an IFA, the destruction of the bank sales forces but the introduction of self directed options (to reduce liability) whilst still charging similar to before.

    I think unbiased changed in the lead up to RDR as they feared that there wouldnt be enough IFAs to support them commercially so needed to include some restricted FAs. It wouldn't have been as early as 2008.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • aroominyork
    aroominyork Posts: 2,827 Forumite
    Name Dropper First Post First Anniversary
    Options
    dunstonh wrote: »
    IFAs are not allowed to have any restrictions. FAs are. It sounds like yours were not IFAs.
    My point is that they could invest anywhere in the market, but in practice they put you into one of their in-house constructed portfolios. The client has to best-fit into their portfolios (cautious, moderately cautious etc.), rather than the firm creating a bespoke portfolio.
  • Matt002
    Matt002 Posts: 82 Forumite
    First Post First Anniversary Combo Breaker
    Options
    With the help of one of the chaps on here I have now got a bit of a clearer understanding of who I was talking to. So what the general verdict on Networked IFAs like the 2plan chap v directly authorised IFAs? Is that what you mean aroominyork, that a networked one could offer the market but in practice wont? That certainly seems to be my experience.

    Is a directly authorised chap likely to be a sole trader or will they nearly always be a few guys operating out of an office?

    I think the we come to you bit is a bit I dislike quite a lot, I'd rather see some one in an office!
  • aroominyork
    aroominyork Posts: 2,827 Forumite
    Name Dropper First Post First Anniversary
    Options
    zzr-matt wrote: »
    So what the general verdict on Networked IFAs like the 2plan chap v directly authorised IFAs? Is that what you mean aroominyork, that a networked one could offer the market but in practice wont?
    I don't know anything about networked IFAs; I have used three stand-alone firms. Instead I'll offer a health warning: what seems like informed advice on this forum might be from people who are only a small step ahead of you in their research/understanding. The advice might be from people who joined the forum to seek advice and then start offering it. (I am basically giving a health warning about anything I write :))
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    aroominyork wrote: »
    I don't know anything about networked IFAs; I have used three stand-alone firms. Instead I'll offer a health warning: what seems like informed advice on this forum might be from people who are only a small step ahead of you in their research/understanding. The advice might be from people who joined the forum to seek advice and then start offering it. (I am basically giving a health warning about anything I write :))

    It's never advice on the forum, only comment and opinion.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards