News/Events

Quiz potential financial advisers before you choose [26th November 07]

The best Investment you can make is finding the right adviser. Not all advisers and firms are the same, with plenty of choice, take the time to make the best choice and understand the differences between different advisers and firms.

The vital question is whether an adviser is “tied” or “Independent”. Since June 1st 2005 there have been four types of Financial Adviser. A Tied Agent is the agent of one company and can only sell products that they provide. A Multi Tie Agent is the agent of a number of different insurance companies and can only sell products provided by the companies they represent. A Whole of Market Adviser is the agent of the client and is legally bound to access and recommend the most suitable product or service from the whole marketplace to suit the client’s needs. Independent Financial Adviser (IFA) is the same as a Whole of Market Adviser except remuneration can be on a fee basis instead of commission if the client wishes.

Be cautious of tied agents - only whole of market advisers or an IFA can access the whole market securing you the best products and deals available.

The firms’ size is another consideration. If a firm is too small, you may be relying on one person’s expertise which can vary. One adviser can be more experienced than a range of advisers who are less qualified, but be careful as this is not always the case. Does the firm have any administration support or is the adviser juggling everything themselves; this may have a negative impact on the service they offer you. 

If the company is too large, it may be faceless, even if they offer adequate support services it may not provide individual touches that really count. Mid sized firms are often the best option; typically with several advisers on hand and generally larger administration teams. Some firms, like Langtons also have internal compliance departments to provide advisers with regular training and ensure high standards of professionalism.

Most advisers will offer initial consultations without charge or obligation. Advisers will ask you a lot of questions about you and your financial situation so that recommendations can be made. This is your opportunity to ask questions about the adviser and the firm to assess whether you feel confident and comfortable with them. 

Ask how long has the firm been in business. How long the adviser has been advising and how they keep up to date with changes. You should check that the adviser is competent in the financial area in which you specifically want advice. Ask the adviser to explain the type of ongoing service and support you will receive. If they are only interested in initial recommendations, it is best to look elsewhere.

You’re discussing your personal details, your family, your hopes and aspirations you must have an adviser that you can easily talk to, not someone that you find intimidating, brash or patronising. If you don’t feel comfortable, for all their expertise, they are not right for you. If you dread seeing your adviser perhaps you should choose another one quickly.

Seeing an adviser should be enjoyable. In today’s fast moving world, individually tailored and independent expert advice is essential. Make the best investment and find the right adviser!

This article was written by Langtons - Published in the Western Morning News, This is Money, 26th November 2007