How do I find an Independent Financial Advisor?

BlondeHeadOn

I know for a lot of issues on this board the advice includes: "ask an Independent Financial Advisor" - but:

1. How do I go about finding a suitable such advisor?
2. How much should I expect to pay?
3. How do I know if they are any good (I do not know anyone who had ever used one, so personal reccomendations are not much use)
4. What information should I expect to be asked (and therefore have to hand) so I don't waste time having to book repeat visits etc.?
5. Can I do most/all of this by phone/email?

I want advice on my endowment policy and some life insurance / CI policies. And yes, I have already asked for and received some great advice on this board, but for future reference I'd like to know how to find a good ISA.

dunstonh

How do I go about finding a suitable such advisor?

Yellow pages or a few search engines. www.unbiased.co.uk is a good one (although turn off the filter that only shows those that pay to advertise and get a bigger advert block than those that dont).

How much should I expect to pay?

depends on the transaction and the type of IFA you use.

1. How do I know if they are any good (I do not know anyone who had ever used one, so personal reccomendations are not much use)

Statistically, IFAs do the majority of transactions but have the lowest levels of complaints at the FOS. Indeed, the figures indicate an ever improving situation with independents now only having 2% of the complaints at the FOS. So, chances are that even a random pick should be ok. However, to help yourself a little, try to avoid the salesforces (national and regional). You dont really want advice from some one with a sales target. Try and get in with the owner, partner or director. These advisers have personal financial liability for the advice they give. Unlike salesforce employees. If you know that bad advice means you have to pay up, it sharpens the mind!

1. What information should I expect to be asked (and therefore have to hand) so I don't waste time having to book repeat visits etc.?

Again, depends on the area you want looking at. Generally though it will be information on that area.

Can I do most/all of this by phone/email?

Its certainly possible but it will typically be a different type of service.

The term IFA means they have access to whole of market and work for you and not an insurer or investment house. However, beyond that you have different business models. Some will more focused on financial planning and the whole overview. Some will be transactional and be there when you need them to look at only the areas you want them to. Some will be servicing advisers on investments only (IFAs are technically designated investment advisers and planners). Some will specialise in certain areas. So, you may find you have to contact a few to get exactly what you are after.

BlondeHeadOn

Many thanks dunstonh - that link in particular is a very useful starting place, thank you.

:T

Gilbert_Dubeurre

Hi,

is it possible for a firm to be both multi tied and independent? I thought it had to be one or the other?

dunstonh

Gilbert_Dubeurre wrote: »

Hi,

is it possible for a firm to be both multi tied and independent? I thought it had to be one or the other?

Yes, a firm can offer tied, multi-tied and whole of market or independent. However, the individuals in that firm cant have multiple levels. They have to be one thing or the other.

That said, there are three classification levels.
1 - general insurance and protection
2 - mortgages
3 -investment class

A tied agent for insurance (and/or investment) is often whole of market on mortgages. A well used and well known "con" for tied agents is to use their whole of market status on mortages to give the impression they are whole of market in the other two areas without actually saying it.

An IFA has to be indpedent in investment class but doesnt have to in the others. Although the chances they are not on mortgages is very unlikely. General insurance by its very nature means its impossible to be independent and that term isnt even recognised in that area. So, you will normally find its referred to as a panel or selection.

Dont the FSA make it easy to understand.......not

Gilbert_Dubeurre

dunstonh wrote: »

Yes, a firm can offer tied, multi-tied and whole of market or independent. However, the individuals in that firm cant have multiple levels. They have to be one thing or the other.

That said, there are three classification levels.
1 - general insurance and protection
2 - mortgages
3 -investment class

A tied agent for insurance (and/or investment) is often whole of market on mortgages. A well used and well known "con" for tied agents is to use their whole of market status on mortages to give the impression they are whole of market in the other two areas without actually saying it.

An IFA has to be indpedent in investment class but doesnt have to in the others. Although the chances they are not on mortgages is very unlikely. General insurance by its very nature means its impossible to be independent and that term isnt even recognised in that area. So, you will normally find its referred to as a panel or selection.

Dont the FSA make it easy to understand.......not

But I dont understand! can the firm have multi tied advisers for investments, and independent advisers for investments? I'm looking to deal with an open market option and a firm I know about can offer me tied or independent advice for that business? surely the tied adviser must tell me that the independent adviser at the firm can offer me more choice?

dunstonh

But I dont understand! can the firm have multi tied advisers for investments, and independent advisers for investments?

Its the individuals that matter, not the firm.

I'm looking to deal with an open market option and a firm I know about can offer me tied or independent advice for that business? surely the tied adviser must tell me that the independent adviser at the firm can offer me more choice?

IFAs are responsible to you. So, they have to give you best advice. Tied agents are responsible to their employer and only have to give you the best advice from their product range. They have no requirement to tell you that something better exists.

<opinion on>
Any firm that is offering multi tie, tied and independent advice is doing do for their own benefit as the more you tie yourself to a company the greater the commission is and lower the costs. They are not doing it in the best interests of their clients. So, the simple solution is not to use the firm.
<opinion off>

Gilbert_Dubeurre

dunstonh wrote: »

Its the individuals that matter, not the firm.



IFAs are responsible to you. So, they have to give you best advice. Tied agents are responsible to their employer and only have to give you the best advice from their product range. They have no requirement to tell you that something better exists.

<opinion on>
Any firm that is offering multi tie, tied and independent advice is doing do for their own benefit as the more you tie yourself to a company the greater the commission is and lower the costs. They are not doing it in the best interests of their clients. So, the simple solution is not to use the firm.
<opinion off>

So what you're saying is that the firm can offer me tied advice and if I don't like it, they can then offer me independent advice? That's having your cake and eating it, isn't it? I thought the firm would have to tell me that independent advice is available from the outset.

This is very confusing, isn't it?

Hillfly

I can recommend mine if you like?

I've used him for years and he's been excellent.
PM me if you want his details. I don't get any kickback fo referrals by the way - this is just my personal recommendation.