How to find an Independent Financial Adviser

Ashlion

Is this a trusted website to find an IFA? msn.unbiased.co.uk/index.asp
Or is there a better place?

What's the best way of finding an Independent Financial Adviser and what certification should they hold?

I know that if you opt for fee paying rather than commission, the advice is likely to be less biased. Is there anything else to take into consideration when selecting an IFA?

thanks in advance....

dunstonh

Is this a trusted website to find an IFA? msn.unbiased.co.uk/index.asp

its the MSN sponsored front end for www.unbiased.co.uk which is the same database but the main site.

Its trusted as much as it can be. You have to be registered by the FSA to appear on that site and you are meant to be an IFA (although a small minority of multi-tied agents have managed to find their way on there in the past but are removed when found).

What's the best way of finding an Independent Financial Adviser and what certification should they hold?

There have been many different qualifications over the years and there are different exam boards so whilst the site does have a qualifications filter, it is largely useless. For example, if you select the adviser should have FPC level of qualifications it will only show those with FPC. It will not show those with the CFP or CEFA versions which are of equal standard. Its the same for higher level exams as well. G60 was replaced with J05 and if you select one of those you wont get the other. If you select both then it will only look for advisers with both (and that will give no responses).

To be on that site they have to be at least the minimum standard. Higher level exams are desirable for certain transactions but unnecessary for many.

I know that if you opt for fee paying rather than commission, the advice is likely to be less biased.

Fee or hybrid fee (where you agree a fee but use the commission system to pay for it. ie. agree a fee of £1500 and if a product that pays £2000 commission is recommended, then the adviser takes £1500 and rebates the £500 or uses the £500 to lower plan charges. In some cases it can be better doing it that way but in most cases it makes no difference).

Is there anything else to take into consideration when selecting an IFA?

At the moment, the term IFA covers a vast range of skills, experience and qualifications. Some IFAs are specialists. Some are general practitioners. Some will spend 90% of their time on mortgages whilst others spend 90% of the time on corporate affairs etc. So, ask questions about what sort of business the IFA does. If investing, is your lump sum high enough to justify a specialist or will a GP IFA do?

Charges will vary massively with advisers. Don't assume that we all charge the same. I know some very greedy advisers and I know some very fair ones.

The qualification standards for IFAs are going up in a few years time. It may be worth finding out what the long term plans of the IFA are going to be. You dont want to start a long term business relationship with an IFA that is in their mid 50s and likely to not make the new exam requirements and retire in a couple of years. Also, avoid salesforces. A sales environment is not a good one for advice. Try and get in with the owner/partner/director of a firm. They are likely to be there long term and also they dont have to worry about an employer taking a cut of their income or commission.

Ashlion

Thanks Dunston, that's a very thorough response! :-)

One more thing, what would be considered a large enough lump sum to justify hiring a specialist investment / savings IFA?

TBeckett100

As an IFA I would look at 20k min to add value, my average investment size is £200,000. I am sure you will get plenty of IFAs sniffing on here for clients Ashlion. Always steer clear of ones on here who seem to spend all day touting for business rather than looking after their own clients.
p.s. on lunch break.

TBeckett100

dunstonh, looking back at the timing of your posts, are you a self employed person with no family commitments? I would get fired if I spent all day at work on this website and divorced if I was up until the early hours at home.

dunstonh

TBeckett100 wrote: »

dunstonh, looking back at the timing of your posts, are you a self employed person with no family commitments? I would get fired if I spent all day at work on this website and divorced if I was up until the early hours at home.

I own the business and have 2 direct staff on my books and another 5 bringing in business (on a self employed but attached basis). I tend to spend most of my time in front the computer nowadays checking their business and writing reports and doing research. I rarely do appointments nowadays as its an established business. I am in the lucky position of being able to cherry pick work I want to take on or not. I tend to pop on to the site between reports which is why you see me contribute a lot. Plus, I am a fast typist so it doesnt take long.

AFAIA, there are only 4 IFAs contributing to the board at the moment and none of them appear to be making any attempt to get business. You tend to find that its the mortgage advisers where the issues are and it also tends to be the ones that do not contribute to the board but PM when they read posts that they think they may have a shot at.

jemnetley

Thanks very much for a most enjoyable for and against SJP. The latter are in the majority. As a not too novice investor I am delighted to have had confirmed my views on SJP, how slick they are, their funds and the range alongwith the need to have a more balanced and structured portfolio than they can possibly offer. I have two illustrations in front of me for the same product on a large lump sum investment. I know FSA illustrations are not infallible but they are a starting point. The return on the SJP one was £50k less than the one from the IFA and their charges were 3x as much. All I can sat in summary is that you must see more than one potential service supplier at the outset and that you should use the web to investigate them.