How doy you pick an Independant Financial Advisors

dunstonh

And you yourself acknowledged that he did exactly what he was asked to do - that he did nothing wrong.

He did. However, he put you 100% into that and it was a poor quality product. So, you cannot complain about the advice as it broke no rules. However, it was simplistic and not best advice.

actually, I do tend to think that you're guaranteed a certain basic level of competence and honesty if you go with a big bank for this very basic stuff. It might not be high, but I assume that I'm protected from real crooks by sticking with a bank

That is a misconception then. Banks are the biggest problem to financial advice and the FSA have finally realised that and will be stopping tied agents from calling themselves financial advisers with rules coming in place this October.

And at what point does it make sense to get professional help? For example, is there any point if you don't want to dabble in investments?

Not really. Investment advisers are investment advisers not savings advisers. However, for the wealthy there are savings options which use investment wrappers which can reduce the tax payable. So, its not a 100% rule.

So if I get an IFA to pick shares or funds based on my risk profile and they do not perform as expected, who do I have to blame?

IFAs do not pick shares. Its outside of their remit. Although some may have access to stockbrokers who do this. IFAs role is to ascertain your risk profile and recommend the investments to fit that risk profile. Performance you cannot complain about but if the risk profile is wrong you can.

Most complaints regarding investments relate to inappropriate risk profile. Most DIY investors tend to invest above their risk profile as well. Not a problem in the good times but a disaster in the bad. If an adviser gets it wrong you get redress. If you get it wrong you dont. In many cases, there is little or no cost difference using an adviser.

I can honestly say that they were mainly interested in selling life insurance together with income protection rather then discussing my actual investment needs. Despite explaining several times that as someone with no dependants or (at that time) no mortgage, income protection was not high on my list of priorities, they would not let this drop.

Going back a few years, the regulator insisted (or more often compliance departments interpreted it that way) in full reviews and protection was the top priority to be reviewed. What you see as a negative was actually a requirement. In more recent times, focused reviews have become acceptable and more common.

When I was getting my mortgage I saw another IFA to find a good mortgage deal. He found one from Abbey that he thought was the best available. I found a better one through Direct Line - lower interest rate, lower fees - the chap just tried to brush my deal under the carpet and then tried to sell me life insurance.

IFAs are increasingly dropping mortgages. You cannot do both mortgages and invesmtents and be best in both. You end up being a jack of all trades, master of none.

Basically, I would want an IFA with a first class degree from a top 5 UK university who also has post-graduate qualifications and a good level of experience. I'm yet to come across one.

And someone with that level of qualifications wouldnt be interested in dealing with you. I dont mean that bluntly but you have to be realistic to what you are asking for. Of course, the new qualification standards for IFAs (not tied agents) will see a move towards that and put many within just 3 or 4 of having a degree standard qualification and expect the numbers at that level to increase.

mr_rush

Going back a few years, the regulator insisted (or more often compliance departments interpreted it that way) in full reviews and protection was the top priority to be reviewed. What you see as a negative was actually a requirement. In more recent times, focused reviews have become acceptable and more common.

Actually it was less then 18 months ago.

IFAs are increasingly dropping mortgages. You cannot do both mortgages and invesmtents and be best in both. You end up being a jack of all trades, master of none.

Then the particular IFA I dealt with should have just said that the best deal was the one I found.

And someone with that level of qualifications wouldnt be interested in dealing with you. I dont mean that bluntly but you have to be realistic to what you are asking for.

I assume you say this because I do not have enough equity for top level IFA's - St James's Place etc... Fair point. I take advice from friends who work in the financial sector: ones who went to Oxbridge, LSE, UCL etc and now work for UBS, Accenture and so on. But I also spend a lot of my own time researching investment products. As I'm only 27, I do not doubt that I have and will make mistakes. I still think that the person with the greatest interest in your money is yourself and that I'm capable enough to make sound financial investments atleast until I have enough equity to hand over to a IFA who's qualifications and standards I respect/trust - i.e. when I have £100k equity, hopefully in 5 years or so.

[Deleted User]

Not really. Investment advisers are investment advisers not savings advisers.

Many people with money to invest don't want to gamble on the stock market. (Including myself). We want to know the best way to invest our money in nice, secure bank accounts, cash ISA's etc. We don't mind a 'package' that includes some investments provided we have a nice, safe 100% guaranteed return if things go badly. So a Financial Advisor's idea of a 'good product' is likely to be worlds apart from mine.

I think the term "Financial Advisor" is perhaps missleading then. If someone has a large sum of money they want to make sure they do something sensible with it. Rather than slap it all in the first bank account they find, they go to a Financial Advisor assuming that he/she will give them the best possible all-round financial advice, but in fact they're getting pushed down a path they really don't want to take.

For example, if a Financial Advisor only really deals in investments and it's not a good time to invest in the stock market does he tell his paying customers to pop their money in the high street bank (where there is no cut for him)?

Who do you go to if you want to steer clear of investments but just want good, solid, unbiased financial advice?

mr_rush

Who do you go to if you want to steer clear of investments but just want good, solid, unbiased financial advice?

You follow your own advice

dunstonh

Actually it was less then 18 months ago.

Then the employer has decided not to allow focused reviews. That is a compliance and liability issue with that firm.

Then the particular IFA I dealt with should have just said that the best deal was the one I found.

There is no regulating personality.

I assume you say this because I do not have enough equity for top level IFA's - St James's Place etc... Fair point.

St James place are not IFAs. They are a multi-tie and under current proposals would be classed as sales reps not advisers (something they are not happy with but is common sense).

Many people with money to invest don't want to gamble on the stock market.

You seem to think that investing means stockmarket. It doesnt, There are other asset classes and options as well.

We want to know the best way to invest our money in nice, secure bank accounts, cash ISA's etc

That isnt investing. That is saving. It isnt risk free either. You can suffer shortfall risk and inflation risk with savings accounts.

We don't mind a 'package' that includes some investments provided we have a nice, safe 100% guaranteed return if things go badly.

But you said you dont want investments higher up.

I think the term "Financial Advisor" is perhaps missleading then. If someone has a large sum of money they want to make sure they do something sensible with it. Rather than slap it all in the first bank account they find, they go to a Financial Advisor assuming that he/she will give them the best possible all-round financial advice, but in fact they're getting pushed down a path they really don't want to take.

If you want to pay for holistic financial advice then you will get savings account advice as well. However, most people dont like to pay for the advice so you end up with transactional advice.

For example, if a Financial Advisor only really deals in investments and it's not a good time to invest in the stock market does he tell his paying customers to pop their money in the high street bank (where there is no cut for him)?

Again there are other asset classes within investments such as cash, fixed interest funds, property as well as stockmarket. Investing isnt all about stockmarket.

Who do you go to if you want to steer clear of investments but just want good, solid, unbiased financial advice?

Fee based IFA.

janken

Deleted_User wrote: »

Who do you go to if you want to steer clear of investments but just want good, solid, unbiased financial advice?

Pay for it or use this site:D