How to choose an IFA?

Loaded_Bachelor

My mother wants some advice on inheritance tax planning and investment trust products.

Does anyone know please the best way she could source a couple of Independent Financial Advisers in the Kent area who will advise for free should my mother not actaually make the investments through them?

Also, is there some kind of trade organisation that IFAs are members of that is checkable and would give you extra confidence when using them?

Thanks for your help with this.

dunstonh

There is really no trade association as such. IFAs have to be regulated by the FSA so that covers that requirement. Some IFAs will be directly registered and take care of their own legal/compliance issues. Some will be with a network who will monitor and review cases and review compliance/legal issues. There are some who say the latter is better from a compliance point of view as its a 3rd party reviewing the work of the IFA rather than in-house.

IFA promotions has a list of all IFAs but that is not really a good guide on quality as there are different levels of membership to that. The more the IFA pays IFA promotions, the more that can be displayed about the IFA. Paying more to display more does not mean they are any better.

IFA means independent financial advisor but that doesnt mean that the IFA is qualified to discuss all areas. They could be a general practioner covering most areas or specialise in areas of business like pension transfers or estate planning.

What you need is a specialist in estate planning and you need to make that clear when you source the IFA. The area you want to look at often involves a lot of work. Virtually all IFAs will complete the first appointment on a no charge basis. Then depending on the work involved, I would expect them to present the charging options. It may be that they will continue on a no fee basis with the hope of earning commission at the end on products sold (some you win, some you dont). Or, they may continue on a fee only basis but if you then proceed with any business, the earnings from the products sold would offset the fees (or fees waived as products pay commission) or if you stay with the fee option the products would be set up on a no commission basis meaning lower charges or better allocation rates.