Why do the British public have a jaundice view of financial planners?

lordhaldon

It's all in the title. Plus, how much do you think and adviser should get paid for advice that is underwritten from a fully qualified professional adviser.

lordhaldon

Interesting - 71 views so far and no-one has posted a comment. Is that because no-one cares how much their adviser gets paid, they are only interested in getting it cheap but too embaressed to say or they come on to websites like this to see how they claim against mis selling? At the risk of being controversial, the great British public need to understand that cheap is not always best and that for good advice - which the majority of whole of market IFA's do - they need to be prepared to pay.

olly300

I have no idea - probably why the other 71 people didn't post either.

lisyloo

I've won and endowment mis-selling case and a pension case against advisors.
We have had a number of scandals and I think the finance industry has a bad reputation.
We have had endowment mis-selling, pension mis-selling and now a global crisis that has been blamed on the banks.

Is it any wonder people want to get away from high charges, poor advice etc.
This is why a lot of people have got into property becuase they are in control, whereas pension rules appear to change every 5 minutes.

A recent high-profile case of fraud
http://www.bbc.co.uk/news/uk-england-devon-12060100

I still use advisors and pay for their services and currently I don't have any investment property, but I can fully understand why people want personal control.

Blobby8_2

What is a financial planner ? Or do you mean an IFA ?

lisyloo

IFA are independent financial advisers.
Not all financial advisors are independent. Some only work with a certain product range e.g. those in banks.

Blobby8_2

I wouldnt pay a financial advisor in washers. An IFA, I would expect to pay around £500 for a full overhaul of my financial situation, pension , investment strategy etc .

WhiteHorse

Because most of them are shysters, that's why.

dunstonh

WhiteHorse wrote: »

Because most of them are shysters, that's why.

And you met the 30,000 or so IFAs and god knows how many tied agents?

vikingaero

Most of my dealings with FA's in the past have been clouded. When I first bought my house in 98 I was expected to attend a mortgage interview with their FA before my offer would be put to the seller. Despite this being effectively "outlawed" there are plenty of EA's who STILL insist on this. As the EA's FA are complicit then by association they are shysters.

The EA recommended an endowment mortgage. Luckily I went with my head and went elsewhere. Then I got caught up with a FA from Allied Crowbar.

With the advent of t'internet it's much easier to get information for those savvy enough to understand the pros and cons.

lordhaldon

WOW! Thank you all for your openess. The KPMG report that I mentioned said that most people were prepared to pay £50 max. Clearly they do not understand the amount of work that a good IFA has to do - or the fact that their advice can carry a lifetime guarantee even if the IFA dies. Did you know that? As for tied advisers, you could do better. If you feel uncomfortable with your IFA, change him. A good IFA wants a life time relationship with you but be prepared to pay for it. As I have said on previous posts, try telling your accountant or solicitor he is charging too much. Also, how would you feel if someone told you that you were getting paid too much? In addition, how would you feel if the work you did today, you were still liable for well into retirement? No one is wrong with their comments but some are ill advised or only know the half.

..............and finally (QUOTE) "With the advent of t'internet it's much easier to get information for those savvy enough to understand the pros and cons. " Would you try to conduct brain surgery on the back of researching t'internet? And that comes from the owner of a price comparison website. ME!