Beware the Barclays FTSE Capital Protected Plan and other similar

dunstonh

The only financial adviser I ever dealt with was my ex-Landlord, whom I sued. I wasn't impressed with him - he seemed pretty thick to me. What exams do IFAs have to take? Are they optional?

Was he a financial adviser or an independent financial adviser? Most IFAs who started as tied advisers (most common action as its almost impossible nowadays to go straight to IFA with no industry experience) will tell you they know far more as an IFA than they ever did as a tied agent.

Exams are required nowadays but werent before 1995(ish). You wouldnt be able to sit and pass the exams without significant learning. I say learning rather than understanding as exams dont measure an understanding of the subject and that comes later. I reckon it took another 2 years after my exams were passed before things really started to drop into place across the board.

I'm not sure that the general public trusts financial advisers as a collective body

Personally I don't see it at my level but virtually all the clients I get come to me on referral. However, the industry does have a poor reputation. Unfortunately, most of the reasons were created by people who have long given up or moved on to other occupations either by choice or being forced to. Leaving the rest of us to mop up their mess (and pay for it).

Most of the IFAs I know are highly skilled although there are small number who I wouldn't trust to do a decent job other than on perhaps mortgages. As you say, the consumer doesnt know who they are though.

You can narrow down the chances though by avoiding tied advisers (in general - sorry Tiggs, who is highly skilled in his field but is now tied). Mainly the advisers at banks and building societies who tend to be low skilled due to low experience and limited product range. Ask to see the research and get the adviser to explain the recommendation. If investments, if you are recommenced a "defensive managed fund" (or cautious, balanced or distribution) then that is a lazy recommendation and suggests lower skill and understanding (although there are exceptions but you would want a good reason). If you are recommended a GEB, thats a good reason to walk away

over 80% of advisers authorised today have never had a complaint according to the FOS and the majority of complaints come from just 12 tied adviser salesforces. So avoid them and you stand a better chance of seeing a good adviser.

Market_Oracle

whambamboo wrote:

Mr. Brown vows never to invest in any financial product again and takes his cheque for £112,800 and goes out to buy a buy-to-let flat.

I think you maybe misunderstanding the 6% charge.

Yes it is a charge but its 'hidden away', you would still get 20% in 2.5 years ON your initial investment or 110% of any gain on maturity added to your initial investment.

anniversary

Until I read your report (2006) I was thinking of investing some money into this bond - can anyone tell me how it compares with the SKIPTON Double Asset bond which is also among the "Top Ten Savings Accounts" on Which or what advice would you give regading a safe 5 year savings plan??

Thanks

dunstonh

As an indication of how things change and why you shouldnt rely on old things posted on the internet, the current Barclays structured product for income is actually pretty good.

Structured products do historically tend to have good terms after a market crash. Already that window for opportunity is closing (you could get over 9% earlier in the year but best you can get is 7.6% at the moment. New issues are coming in the 6% range).