09:16 20 September 2013
If you need to seek the assistance of a financial adviser, you must determine the type of service that you are receiving as there is a set of new policies regarding financial advisers giving an independent or restricted piece of advice. You must know what this implies and how much do they charge for such services.
What are the factors you should consider before choosing a financial adviser?
Financial advisers must have at least the minimum qualifications and must abide with the code of ethics as authorized and controlled by the Financial Conduct Authority (FCA) regardless if they are independent or restricted and should be up to date with the latest developments in financial markets through constant professional enhancements.
All advisers are guided by the same FCA rules; follow the same guidelines in gathering facts about any situation before giving any product recommendations. Thus, the level of quality of the advice they will provide shall be the same whichever you choose.
In case the product they recommended did not suit you, you have rights to protect you unlike when you bought a product without seeking an advice.
Financial advisers used to be paid through commissions from the initial investment on a product bought by a consumer and from products with ongoing payments such as pension. When changes were introduced on December 31, 2012, financial advisers no longer receive commissions but charge a certain fee which should be discussed to you upfront and negotiate with you how payment should be made.
Financial advisers must be registered with FCA. Have a statement of professional standing, have level 4 qualifications or above of the National Qualifications and Credit Framework.
Consider different financial advisers and compare qualifications, locations and what their costs are before choosing the right financial adviser for you.
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