Financial advisers

Neenie01

I've been to see three independent financial advisers and all three can only offer me one product, that is their company product! Is that really independent? Also how do I trust them with my money that I am investing, what happens if the adviser or the company s/he works for disappears!? I thought financial advisers, offered you different alternatives from across the board, that best suit your needs.

JoeCrystal

Are you sure they are IFAs? Only it doesn't sound like Independent Financial advisers to me! Worth having a look on https://adviserbook.co.uk/ and select Confirmed Independent?

What did you ask them to look into and what was the product on offer?

DrSyn

If they are Independent Financial Advisers (IFA), then that is exactly what they are supposed to do. But not all FA's are independent. I can only assume that you did not see IFA's.

I suggest you read the information on the sites below before going any further. They should answer your questions.

https://www.citizensadvice.org.uk/debt-and-money/getting-financial-advice/

https://www.moneysavingexpert.com/savings/best-financial-advisers/

dunstonh

I've been to see three independent financial advisers and all three can only offer me one product, that is their company product!

The I in IFA stands for independent. IFAs do not have their own company product. FAs on the other hand usually do have their own company product.

Over half the people who see a FA think they are seeing an IFA. Perhaps this is the case here.

Also how do I trust them with my money, what happens if the adviser or the company s/he works for disappears!?

You dont invest in the IFA or a product or investment belonging to the IFA. So, if the IFA ends their career, you will either be appointed a new one or you can find a new one.

I thought financial advisers, offered you different alternatives from across the board, that best suit your needs.

Financial Advisers offer their own product or from a panel or restricted range of options. Only IFAs offer from the whole of market.

AnotherJoe

Neenie01 wrote: »

I've been to see three independent financial advisers and all three can only offer me one product, that is their company product! Is that really independent? Also how do I trust them with my money, what happens if the adviser or the company s/he works for disappears!? I thought financial advisers, offered you different alternatives from across the board, that best suit your needs.

No, it isn't! Do their letterheads, website etc actually state they are independent financial advisers? I thought that was illegal.

Neenie01

JoeCrystal wrote: »

Are you sure they are IFAs? Only it doesn't sound like Independent Financial advisers to me! Worth having a look on and select Confirmed Independent?

What did you ask them to look into and what was the product on offer?

After wasting my time twice, seeing what I thought was IFA and turning out they were not.
I specifically asked and they said they were. Just checked adviser book and they are listed but it states "Independent status unconfirmed".

I was looking to savings and low risk investments, they have a portfolio that they offered.

Neenie01

I've double checked the company website and it definitely says that the person I saw is an Independent financial adviser. The product that he offered was a medium low risk investment portfolio. he said that they have researched the market (I can't remember his exact words) and this would be the best investment portfolios for me. Maybe I am thinking its his company product as the information had their company logo on it.

dunstonh

Neenie01 wrote: »

I've double checked the company website and it definitely says that the person I saw is an Independent financial adviser. The product that he offered was a medium low risk investment portfolio. he said that they have researched the market (I can't remember his exact words) and this would be the best product for me. Maybe I am thinking its his company product as the information had their company logo on it.

Our research has our logo on it.
Our reports have our logo on it.
Some of the platforms will place our logo on their client portal.
Some of the platforms place our name, address and contact numbers on their paperwork.

It is normal to see the IFA logo/details appearing on things provided by third parties.

The IFA firm will be unlikely to create a bespoke portfolio for you personally unless there are unusual requirements or specific needs. The IFA will have a range of company portfolios that the IFA has researched and keeps up to date (typically quarterly). There will be a number of these to cover different risk profiles and time periods.

An experienced IFA can usually tell the provider/platform they are going to use without doing the research as they do these things daily. Things change but you do have an idea of what is going to come out best. Plus, the wording will usually be along the lines of "our portfolio" as its the IFA that builds it. The exception is if the IFA uses a DFM (discretionary fund manager). Only then is the investment decision farmed out to a third party.

AnotherJoe

Neenie01 wrote: »

I've double checked the company website and it definitely says that the person I saw is an Independent financial adviser. The product that he offered was a medium low risk investment portfolio. he said that they have researched the market (I can't remember his exact words) and this would be the best investment portfolios for me. Maybe I am thinking its his company product as the information had their company logo on it.

Dunston has described it well, so some at least of these and maybe all are offering ready made portfolios which does not mean it's their own product, it just means they looked around and chose say 10 different mixtures of investments and they allocate each person to one of those 10 classifications and you got the "low risk person with up to £x to invest = portfolio 3" option. Just go back and ask them to clarify this. Most likely you'll find the funds are those available in the wider marketplace and they allocated a set of those as matching your needs.

Just go back and ask them to clarify this. Or if they told you what the mix is publish it here, eg 20% xyz fund, 30% abc bond, etc.

Neenie01

Thank you for your replies. Therefore it's not actually their own product, it's a portfolio they recommend. Sorry I am new to this and the thought of investing in the stock market is scary. On another note, I am also worried about handing over a large sum of money to a IFA company as opposed to a bank. I have checked and they are Authorised and Regulated by the Financial Conduct Authority therefore I guess I shouldn't worry.

dunstonh

I am also worried about handing over a large sum of money to a IFA company as opposed to a bank.

You are not handing the money to the IFA. IFAs do not hold client money. The cheque will be payable to the investment platform. At no point does the money go to or go through the IFA.

If you used a bank sales rep, not only would you get an inferior outcome, the cheque would not be payable to the bank either. It would be payable to the investment platform the bank uses. Sometimes a subsidiary company but often a third party company like an insurer.