Finding an Independent Financial Advisor with no vested interests!

brianfall

How can I find a truly independent IFA? - i.e. one that does not get commission.

The money advice service states that although IFAs cannot be paid a commission if they give you advice about pensions, investments, or retirement income products, they can still be paid commission on mortgages, equity release, general insurance, and protection insurance.

In my opinion, as soon as someone starts receiving a commission for selling products they are no longer truly working in your best interests.

Thanks folks

dunstonh

How can I find a truly independent IFA? - i.e. one that does not get commission.

None get commission. IFAs have to be fee based.

The I in IFA stands for independent.

The money advice service states that although IFAs cannot be paid a commission if they give you advice about pensions, investments, or retirement income products, they can still be paid commission on mortgages, equity release, general insurance, and protection insurance.

Most IFAs only do investment class products. (IFA is the adviser rather than IFA as in the firm)
Mortgages, equity release and insurance is increasingly done by the mortgage advisers and/or protection advisers within the firm.

However, if you say you want to do any of those things on fee basis then and you happen to have an IFA that does things in those areas then an IFA has to allow fee basis.

In my opinion, as soon as someone starts receiving a commission for selling products they are no longer truly working in your best interests.

You have posted in the pensions section. So, as pensions don't allow it then what is the problem?

atush

Any true IFA should be looking out for your interests, and none get comission any longer. With the emphasis aon I for independant.

Not sure what you are talking about really.

brianfall

atush wrote: »

Any true IFA should be looking out for your interests, and none get comission any longer. With the emphasis aon I for independant.

Not sure what you are talking about really.

They can still be paid commission on mortgages, equity release, general insurance, and protection insurance.

dmelife

They can sacrifice the commission and charge you a fee if you prefer

fred990

Interesting question.... I had my AVC's/TFLS paid into my current account in April and have been bombarded by HSBC since. Went for a chat the other day and they are very keen to help out.
Totally impartial they say! We'll see, you can usually smell a vested interest hard sell?

bostonerimus

brianfall wrote: »

How can I find a truly independent IFA? - i.e. one that does not get commission.

If you DIY you will definitely have an adviser with your best interests at heart and you won't have to pay commissions or fees either.

atush

brianfall wrote: »

They can still be paid commission on mortgages, equity release, general insurance, and protection insurance.

and I wouldnt go to an IFa for any of those.

And in general would not even approach equity release. There be dragons.

dunstonh

brianfall wrote: »

They can still be paid commission on mortgages, equity release, general insurance, and protection insurance.

And as I have already said
1) most IFAs (as advisers) dont do those things
2) you can instruct them to be fee basis on those if you wish.

Again, what has this got to do with the pensions section?
What is your issue?

Interesting question.... I had my AVC's/TFLS paid into my current account in April and have been bombarded by HSBC since. Went for a chat the other day and they are very keen to help out.
Totally impartial they say! We'll see, you can usually smell a vested interest hard sell?

They are not independent. They offer the HSBC investment platform with a limited range of funds.

Malthusian

fred990 wrote: »

Interesting question.... I had my AVC's/TFLS paid into my current account in April and have been bombarded by HSBC since. Went for a chat the other day and they are very keen to help out.
Totally impartial they say! We'll see, you can usually smell a vested interest hard sell?

We'll see what? It sounds like you already know they aren't impartial - a meaningless term which they have deliberately used to avoid having to say they aren't independent. ("Independent" is a protected term, "impartial" is not.)

Bank advice should be avoided like the plague. If you think you need advice, see a registered IFA.

atush wrote: »

and I wouldnt go to an IFa for any of those.

Many regulars on this board don't need to. For the general population, however, using an IFA for a protection policy of any decent size will cost the same or less than using a comparison site or going direct (comparison sites get the same commission that an IFA does, or more). It will also avoid the numerous traps that insurers set (e.g. a policy that sets an artificially low premium at the start to appear at the top of the comparison tables, but then ramps up the premium every year, or is written on a never-pay basis).

General insurance and mortgages are more the domain of the comparison sites or a broker. I agree that equity release should be viewed as a last resort, but if someone does reach that resort, independent advice is essential.

redux

fred990 wrote: »

Interesting question.... I had my AVC's/TFLS paid into my current account in April and have been bombarded by HSBC since. Went for a chat the other day and they are very keen to help out.
Totally impartial they say! We'll see, you can usually smell a vested interest hard sell?

With respect, whatever the changes in regulation and practice over the years, it has always been the case that an adviser working in that position can only advise on products from the firm itself and its partners.

If you went into a pub that was a tied house of a named brewery, it would have beers either exclusively or mostly from that brewery, sometimes with perhaps a couple of guest ales subject to brewery approval (and probably reciprocal deals elsewhere). Exactly the same situation for the bank.

If the subject is about IFAs, where as above the I stands for independent, don't look in a High St bank.