Indepenedent advisor

Crocgunnd

Is there an indepenedent advisor who can guide us on how to choose an "Independent Advisor"?

Drp8713

If there was, who would advise you on which one to choose?

chris_m

Drp8713 wrote: »

If there was, who would advise you on which one to choose?

An Independent Advisor, I would hope

Drp8713

chris_m wrote: »

An Independent Advisor, I would hope

Oh, one of them, is there somebody who could advise you of which one to choose?

dunstonh

Most IFAs are perfectly fine and can handle most transactions. If you are going into specialist areas then you may wish to look at some specialist qualifications but remember that those that have spent time getting extra qualifications tend to cost more. If you transaction is a bread and butter one for an IFA then there is little point paying for one with qualifications a mile long.

If you are looking at a long term relationship with an IFA then look to get in with the owner/partner/director IFAs as they tend to stay long term. Employee advisers tend to be more fluid in moving from employers (especially larger firms).

Cant really say much more as you dont say what you are looking to use an IFA for.

Crocgunnd

Thanks dunstonh,
I know my post was a little "tongue in cheek", but thats what I was looking for.
Any thoughts on whether a "One man band" or a group partnership?
I can see the former being cheaper but may not have all the experience, where as the latter, I'd expect to be considerably dearer with additional overheads, but experience between them.
However, in my case, I think my needs will be fairly basic, but I won't know that until I speak to someone.

dunstonh

Any thoughts on whether a "One man band" or a group partnership?

One man band should be fine. Self employed advisers are personally liable for the advice they give for life. Most IFA firms are small local firms with 1-5 advisers. They live or die by local reputation.

A group partnership would depend on what you mean by that. A partnership could still be 1-5 advisers and seeing one of the partners (as in business sense and not some marketing name given to an adviser) would be fine. However, it could also be a company of many employees and much larger. So, my earlier comment would stand.

Since the FCA has replaced the FSA, it has put a much greater focus on systems and controls. One of the things it wants firms to do is have the same processes across all advisers of that firm. It also wants the firm to have sufficient monitoring and controls on the staff. The larger a firm gets, the more restrictions it will put on the staff as they need to cater for the lowest common denominator. So, with larger firms, advisers can find themselves having to follow procedures and requirements that smaller firms do not have to. Decisions may be made centrally (by the firm) rather than the adviser. So, personally, I am more negative towards larger firms than smaller firms.

I can see the former being cheaper but may not have all the experience, where as the latter, I'd expect to be considerably dearer with additional overheads, but experience between them.

Smaller local firms are usually run by advisers that have been around many years. Done their time as employees and have moved to running their own business. Larger firms often employ new advisers or those that lack business sense and/or prefer to be employed. The regulator wont allow a new adviser to set up as a firm principle sole trader. They have to join a network or existing firm.

Crocgunnd

Many, many thanks. Thats just what I wanted.
David

mania112

If you want to be completely thorough with your search

1. go to https://www.unbiased.co.uk and enter your post code - you now have a list of potentials.
2. see if they have the expertise you need - presumably pensions
3. double-check their credentials by entering their information on the FCA register: https://register.fca.org.uk/
4. before agreeing to anything ensure you're happy to pay the price for the service they're offering.

Crocgunnd

Right, I've been in touch with a local IFA and ran through what I was looking for. I asked for a price after the initial consultation. The answer was "4%".
"Of what?" I said
"Any funds that are transfered to another provider. Otherwise it's free"
This is what I was afraid of. It's in the IFA's interest to recommend a transfer otherwise he doesn't get anything out of it.
I have an appointment to see what he has to say, but it is bothering me.

xylophone

What exactly is it that you are wanting to do?

Is it to set up a pension? Transfer an existing pension? Invest outside a pension?