Choosing a financial advisor - What to look out for??

Milky_Mocha

I'm a newbie to professional financial planning particularly for pensions. I was contacted by a company offering to advise and implement solutions for pension, mortgages and life assurance. I appreciate advice doesn't come free (actually I thought it would, with providers paying commission but apparently not?!) but how much is reasonable vs a con? This advisor claims advisors are no longer able to take commission for certain services hence client fees. For mortgages they charge the client £499 (fixed, one-off) For pensions advice there is a range of fee percentages which look high to me but are probably peanuts for people who have substantial amounts to invest.

Where is the best place to find a reputable and reasonably priced f.a.? The advisor who contacted me indicated that I would need to give authorisation for them to contact my pension providers and insurance providers on my behalf. To me there's quite a lot of trust required to make me do that. Is this the norm?

It is possible (likely) that he'd recomend that I consolidate my pension pots. I have a few. Has anyone got good and bad experiences to share? Things to look out for?

Thanks.
MiM

jem16

Milky_Mocha wrote: »

I was contacted by a company offering to advise and implement solutions for pension, mortgages and life assurance.

If you were contacted by them, then avoid them. Legitimate financial companies are not allowed to cold call for business so often these are introducers who may very well pass on your details to those involved in unregulated activities.

What company contacted you?

This advisor claims advisors are no longer able to take commission for certain services hence client fees.

That is true. However this is unlikely to be an adviser and if it is, it's one you want to avoid.

Where is the best place to find a reputable and reasonably priced f.a.?

You should really find yourself an IFA ( Independent Financial Adviser ) or a Restricted adviser who deals with the whole of the market.

Best place to go is https://www.unbiased.co.uk and look for one or more in your area. Then get in touch with them.

The advisor who contacted me indicated that I would need to give authorisation for them to contact my pension providers and insurance providers on my behalf. To me there's quite a lot of trust required to make me do that. Is this the norm?

It is the norm but get yourself a trusted IFA first - one that you've made contact with.

Credit-Crunched

jem16 wrote: »

That is true. However this is unlikely to be an adviser and if it is, it's one you want to avoid.
.

Strange assumption to make? The OP has indicated nothing that would set my alarm bells ringing other than the approach.

The adviser has correctly advised that commission is not possible, he is fee charging and appears to have asked the OP to complete a letter of authority to contact the pension company for the Ceding information? The adviser may have 'purchased' a lead from any number of companies, and as far as I am aware this is not in breach of any legislation?

All seems ok to me?

I would however check them out on the FCA register to look to see that they are authorised, this is in addition to https://www.unbiased.co.uk

http://www.fsa.gov.uk/register/indivSearchForm.do

greenglide

I was contacted by a company offering to advise and implement solutions for pension, mortgages and life assurance.

That looks like a cold call to me!

dunstonh

Strange assumption to make? The OP has indicated nothing that would set my alarm bells ringing other than the approach.

When someone mentions they have been cold called then it is right to be on guard. Genuine advisory firms do not cold call. Those cold calling tend to be lead generation firms using unregulated sales reps who sell leads to advisers or pass them to adviser firms they are linked to (the latter is a significant area where things can be dodgy) or they are outright scams.

So, whilst the information appears to be correct, the fact it originated from a cold call should mean the person is at least on guard. Also, buying or these leads or being the firm that farms the leads is often expensive. The adviser has to pay the generator. So, the fees charged to the client tend to be more expensive.

Using a local firm could well be a better option.

Milky_Mocha

I appreciate the replies, thank you.
I was contacted by the "Pensions Audit Centre" who then referred me to an advisor from Charles Derby Services Limited. The Charles Derby advisor said their fees are very competitive.

TheTracker

This is what others think
http://www.whocalls.me.uk/phone/03334432772

Milky_Mocha

Wow. I wasn't expecting that. Thank you. Probably safe to look elsewhere. It would be a shame if Charles Derby themselves are reputable but due to being linked with PAC that casts doubt.