How to find a decent IFA - or best not to?

BananaRepublic

Malthusian wrote: »

Every, and I mean every, reputable IFA will tell you exactly the same thing. In fact dampening people's expectations as to what they can do is a large part of their job. There is of course the odd charlatan as there is in any profession.

I would hope so, but you might like to speak to an IFA who regularly posts here, and who made some grandiose claims about his/her investment abilities compared to 'ordinary' people due to the 'special tools' he/she used.

dunstonh

BananaRepublic wrote: »

I would hope so, but you might like to speak to an IFA who regularly posts here, and who made some grandiose claims about his/her investment abilities compared to 'ordinary' people due to the 'special tools' he/she used.

I havent seen any such comments from any IFA that posts here. Please back up your allegations with some factual information.

BananaRepublic

dunstonh wrote: »

I havent seen any such comments from any IFA that posts here. Please back up your allegations with some factual information.

You told me that you had access to various tools that mean that you could outperform the ordinary person, and that the if the ordinary person did well in investing, it would be by chance unless they put in a lot of hard work. I consider that remark to be patently false.

It was in the thread that was deleted after I complained about your abuse e.g. telling me I was talking BS. You clearly did not like me saying that I had had a bad experience from several IFAs. I note that in this thread you made a derogatory personal remark about the person who said he had had a bad experience with IFAs.

Incidentally, you clearly spend a large part of your working day posting on here. What do you gain from this?

TH1878

dunstonh wrote: »

Financial services companies are not allow to offer any "hospitality" or gifts or anything like that any more.

Nor doctors and drugs. The wife is a GP - they're more restricted than we (advisers) are.

I can't even embarrass myself by taking one of her Viagra pens and unwittingly handing it to a client to sign forms anymore! Pens are bad!

TH1878

Procrastinater wrote: »

Not all trading is short-term and all "investment" in shares is "Gambling"

And unless that trading involves collectives, nor is it the realm of the IFA. You're confusing an IFA with an investment manager / DFM

bowlhead99

TH1878 wrote: »

I can't even embarrass myself by taking one of her Viagra pens and unwittingly handing it to a client to sign forms anymore! Pens are bad!

Hmm, while I don't doubt that your viagra PENIS mightier than the sword... I can see how it might intimidate clients.

Just don't share it on this family forum.

BananaRepublic

Incidentally since this thread is about how to choose an IFA, I think it reasonable to ask what qualifications IFAs have. In other words what do they bring to the table. My understanding is that it involves 1 years of post A level training.

Aegis

BananaRepublic wrote: »

Incidentally since this thread is about how to choose an IFA, I think it reasonable to ask what qualifications IFAs have. In other words what do they bring to the table. My understanding is that it involves 1 years of post A level training.

If qualifications are all that matter to you, look for someone who is Chartered in some description. For my own Chartership, this meant holding the Advanced Diploma in Financial Planning (which arguably could be achieved in a year if you don't mind sitting about 18 hours of exams while also balancing your job - some people can and do achieve this, but I wasn't one of them), a level 6 qualification, then demonstrating five years of relevant experience and continuing professional development.

Of course, this might be considered overkill if all you wanted was someone to suggest where to invest your £50,000 ISA that you no longer want to hold in cash, as that's a relatively straightforward case.

bowlhead99

BananaRepublic wrote: »

Your memory is selective. You clearly stated that you had access to special tools, and made derogatory remarks about prvate investors abilities.

As a person running an IFA business he will have access to acres of paid research and due diligence on investment products, together with asset allocation profiles put together by professional actuaries etc. The typical private investor who doesn't subscribe to that stuff, doesn't have it.

Like any financial decision: make or buy, insource vs outsource, DIY or get a professional in, the private investor has to assess whether the cost of an IFA is 'worth it'. You can pay the £x or y% a year for the advice and ongoing transactional support from a regulated professional, or you can DIY. It is not just a case of saying the results will be worse with an IFA because I would rather get my 6% return than get 6% return less IFA costs.

Part of the value add from the IFA is ensuring the return is not -60% if that is something you can't handle; it's a risk that some people who have posted their DIY portfolios have not always realised they were taking when they put most of their money into a cheap emerging markets tracker because they saw it had one of the best returns the previous year.

On average, I would rate IFAs abilities above the typical private investor because the typical private investor is not devoting 50 hours a week over a period of decades to provide tailored advice for a wide set of circumstances.

BananaRepublic wrote: »

Incidentally since this thread is about how to choose an IFA, I think it reasonable to ask what qualifications IFAs have. In other words what do they bring to the table. My understanding is that it involves 1 years of post A level training.

Anyone can get a diploma by reading a book and passing a test to show they understand what is in the book. If you're selecting an IFA you can look at their qualifications but also their practical experience and their support infrastructure for starters. I doubt when Lionel Messi goes for his next job interview they will ask him how many football diplomas he got since his A levels.

Undervalued

Wow, there has been some interesting stuff posted here since I last looked!

The business of qualification and / or regulation interests me. I'm not clear exactly which functions are regulated and what, if any, formal qualification a person has to hold to perform them.

Is it like an architect perhaps? A protected title that only those qualified can use. However, as far as I know, anybody can set up in business as a building designer and do chargeable work without being an architect.

Whilst I didn't take offence at dunstonh's comments, I have to say they did nothing to warm my impressions of the IFA "profession".

Despite what he / she says about my first experience I remain convinced I had a very valid complaint. If that happened now, and they hadn't paid up after a couple of letters, which regulator would I complain to? Would it be the FOS like a banking dispute? If so, presumably that would just address my losses and not the IFA's fitness to practice?