Is my IFA qualified/regulated to advise on investments?

Letsgetreal

My IFA tells me that as he is registered as a CF30 - Customer Function (previously a CF21 - Investment Advisor) he is allowed to advise on all regulated investments.

I have been told however that as he is an Appointed Representative that he is actually only allowed to advise on products that he has been authorised to advise on by his Principal firm under their Appointed Reprsentatives Agreement.

Can anyone confirms which of these is true before I take any action.

All help apprecaited.

dunstonh

My IFA tells me that as he is registered as a CF30 - Customer Function (previously a CF21 - Investment Advisor) he is allowed to advise on all regulated investments.

CF30 replaced CF21 a few years back.

I have been told however that as he is an Appointed Representative that he is actually only allowed to advise on products that he has been authorised to advise on by his Principal firm under their Appointed Reprsentatives Agreement.
Can anyone confirms which of these is true before I take any action.

The answer is yes and no.

Being an appointed representative of a compliance company can restrict the adviser from providing advice in some areas as the compliance company/network may state that certain products they have investigated are not suitable to be recommended or require extra licensing (and qualifications) to be able to do them.

However, restrictions tend only to apply to high risk areas and usually involve nothing more than the adviser having the right qualifications and licence (e.g. defined benefit pension transfers or income drawdown).

The term appointed rep is a same terminology that applies to IFAs using networks for compliance as it is for tied agents of an insurer but the differences are miles apart. As long as they are an IFA then it shouldn't matter if they are directly authorised (do their own checking and compliance in house) or with a network (network do the the checking and compliance). For an IFA, there are pros and cons with both options but for consumer there should be very little difference. Indeed, a lot of directly authorised firms buy compliance services from networks whilst retaining their directly authorised status.

jamesd

If in doubt, phone the company that he's an authorised representative of and ask them to tell you.