Understanding LISA interest rates: a comprehensive guide
Understanding LISA interest rates is crucial for individuals looking to make informed d...
Are you looking for a new financial adviser or reviewing the value of your bank’s or stockbroker’s service? If the answer is yes, here are some questions that may be useful to find the right firm or right adviser. Before you embark on the search, it’s important to work out what you need and the kind of service you expect beforehand. Below is a handy list of questions to go through:
1. What are the services I should expect to receive?
You may need advice for a specific product or investment or need someone to provide advice on all of your financial affairs. Advice can be a one-off event or ongoing with regular reviews.
2. What qualifications and professional memberships do you hold?
There is a whole range of accreditations and professional qualifications that advisers can have. Always ask to see a copy of their Statement of Professional Standing, which confirms that an adviser has the required qualifications and adheres to a code of ethical standards.
3. What is your previous experience?
4. Do you offer independent advice?
5. Who are your typical client types?
6. Do you have a clear investment process?
The firm’s investment process needs to be clear and well defined and with deliverable and measurable outcomes. Some advice firms may choose to outsource this part of their work, while others will have their own investment process.
7. What will I pay?
It’s important to know what you are paying for. Some advisers may only charge when you invest, but this could encourage them to sell you products you may not need. Sometimes, good advice is to do nothing for the time being… but you should still pay for that advice.
8. How are you remunerated?
Before 1st January 2013, some advice firms relied heavily on commissions from product sales, which are no longer allowed. Commission on historical products can still be paid to advice firms, but it is worth ensuring that your advice firm has a sustainable future based on advice rather than sales incentives.
9. What makes you different?
10. Lastly, ask yourself can I work with this person?
Ian Thomas is authorised and regulated by the FCA. This article is intended to provide helpful information of a general nature and does not constitute financial advice.