unregulated adviser???

Brie

Hey all

I expect some will say it's none of my business, caveat emptor etc etc etc but I'm concerned about the fact that someone on a local neighbour social media site has posted that they know a great person who's helping them invest.  And then suggesting to people that if they want he can send them this individual's contact number.  

Now I've questioned this openly on the site and been told I'm being silly.  It does seem to me that the poster is getting a kick back for any referral to someone who isn't publicly advertising their services.  And that to me reeks of being a scam at worst or at best an unregulated adviser.  I don't know the ins and outs of how things work - fee for advice or you give the "adviser" money to invest on your behalf. 

But after some to and fro I've been sent the contact details plus the message "Please do not make this public. I have an agreement with him to send any referrals via private message."  

So is there any way to check if this individual is a regulated adviser of any sort?  All I have is a name and a mobile number and am assuming he lives somewhere nearish to me.

eskbanker

Regulated advisers are searchable at https://register.fca.org.uk/s/

Brie

@eskbanker
very interesting - thank you.

So turns out the chap is listed on the register.  But why wouldn't he just advertise his services?  Why set himself up as looking suspect???  Would the company he works for be interested in how he's getting new clients???

eskbanker

Brie said:

@eskbanker
very interesting - thank you.

So turns out the chap is listed on the register.  But why wouldn't he just advertise his services?  Why set himself up as looking suspect???  Would the company he works for be interested in how he's getting new clients???

I don't think there's anything inherently dodgy about an adviser choosing not to advertise their services (via more public channels that you happen to know about) - my understanding is that some advisers are content to take on business via word of mouth, etc, and there's nothing wrong with that.  If he's an employee of a larger company (and many aren't) then do they have a website or online presence?

Eyeful

Did you also check that the contact details on the FCA register matched the contact detail you have for the person in question?
Is the business address the same?
Is the landline phone number the same?
Is the mobile number the same?

If the contact details you have been given do not match those on the FCA register then start to think SCAM.

There are a number of firms on the FCA register which have "scam clones" so it is important that all contact details are the same as on the FCA register.

FCA warning of unauthorised firms:-  https://www.fca.org.uk/consumers/warning-list-unauthorised-firms

dunstonh

FCA just updated its social media rules
gc23-2.pdf (SECURED) (fca.org.uk)

There is a section that would cover unregulated introduced that are paid to introduce.

Albermarle

According to previous posts from @dunstonh, Most IFA's are bombed out with work, and are turning new clients away.
So if someone is touting for business, and paying kickbacks for referrals, then even if they are genuine they may not be that good. Or they maybe newly qualified/young.

@Brie - Where you actually looking for an advisor in the first place?

Personally I would think financial advice and neighbours is not a good mix. If it turns out to be dodgy there might be a lot of bad blood around. 

Brie

Thanks all for your replies.  

Yes the chap's details match those on the FCA site.  And shows that he works for St James.  

Having checked the new social media rules being introduced it doesn't appear that anything is wrong in what is being done.  The guy has simply said "he's done well for me, why not have a chat with him" rather than saying "I invest £1 and am now a millionaire" or similar.  It was just the lack of transparency that peaked my interest.  The guy doing the recommending had previously recommended his brother's construction firm but that had included an ad with all the contact details so very upfront about it all while this was more cloak and dagger.  In fact it is almost identical to other posts we get locally promoting Utility Warehouse where it's obvious that there's payment for referrals happening.  

And I'm not actually looking for a FA/IFA currently.  I do have a recommendation from a ex work colleague which I might take up at some point when life is less complicated.  I quite agree that I wouldn't want things too close to home - like I would sell a car to or buy one from a friend as it can so easily end in tears.  

LHW99

If the company you say is "St James" and that is followed by "Place", they are tied salesmen not IFA's.

DiamondLil

Brie said:

  And shows that he works for St James.  

Now, why am I not surprised ...

El_Torro

The pros and cons of St James Place are well known, though for those not in the know:

There is nothing dodgy about St James Place, in the sense that they are regulated and they're not likely to lose all your money / run off with it. That's the good news.

The bad news is that they are eye wateringly expensive. I don't know if they're the most expensive in the market but if not they must be close. For the platform, fund and advisor fees expect to pay at least 2% per year. All their funds are managed (no trackers), which at least partly explains why they're so expensive. I have not seen any evidence to suggest that their managed funds perform better than trackers (even taking their high fees into account). 

The general advice (at least on this board) is to find an IFA, not a FA. St James Place definitely fall in the FA camp, not IFA.