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A financial adviser should be viewed like any specialist; they provide a service that you could probably do for yourself (e.g. an accountant or a plumber), but your affairs will normally proceed more easily and effectively if you use them. A good financial adviser will have knowledge of the market, legislation, taxation and administration that would take considerable time to research for yourself before you make informed decisions. Additionally, there are some areas of financial planning that can only be conducted through a qualified financial adviser (or example, there are product providers who do not sell directly to the public). If you use a professional financial adviser then you are entitled to expect that the adviser: • Is someone you feel you can trust, who inspires confidence and is a discrete “sounding board” for discussion of any concerns or issues
• Holds a QCA Level 4 qualification or equivalent (mandatory by 2012)
• Is able to recommend products from across the whole market (some will only be able to recommend products from a limited range of providers)
• Is fully authorised and regulated by the appropriate authority – The Financial Services Authority (FSA)
• Keeps fully informed and up to date with all relevant markets/products/providers
• Keeps fully informed and up to date with all appropriate legislation, taxation and administration
• Demonstrates a clear understanding of your needs and objectives
• Provides you with a clear plan to meet your needs or achieve your objectives
• Offers a clear open charging structure, with options to pay for advice either on a fee basis or a commission basis (where the fee is deducted from any subsequent investments). Importantly, you should believe that your financial objectives are more likely to be achieved as a result of the services of your chosen adviser.
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