Finding An IFA
Where can I find IFAs?
A lot of people go to IFAs on referral from friends or relatives, someone that they know who's already had good advice from someone. People often feel happier about going to see an advisor in those circumstances. Yellow pages will also carry some listings. There is also a very useful web site, IFA promotions. They have a lot of consumer information on that site too, it's certainly worth looking at. It will answer the sorts of question you should be asking your advisor when you first see them. It will also give you the chance to search on specialist areas if you are looking for advice in a particular area. That's certainly one worth looking at.
How do I choose which IFA to use?
When you come to choosing an Independent Financial Advisor (IFA), it very much depends on the type of advice you're looking for. Some will specialize in particular fields, and so that will obviously influence your choice. You've also got to consider which Independent Financial Advisor you feel most comfortable with. Often a relationship with an Independent Financial Advisor will last for many years. They'll see you right through from when you start your first job until the day you retire and after, so it's a long relationship or can be, a long relationship built up over many years. So you need to speak to someone that you feel comfortable and confident with.
What questions should I ask an IFA before I sign up?
When you first go to see a financial advisor, if you particularly want an independent advisor you should make sure that they are independent. Ask them. You should then make sure that they are regulated. The Financial Service Authority regulates all financial advisors in UK. So make sure they are properly registered. You might want to find what qualifications they have, particularly if you're looking for advice in a specialist area. They can let you know that. You also want to know about the costs of the services. You'll want to know what you're paying. The Key Facts About The Costs Of Our Services document will help you out with that one. That will explain all the different options to you. They also provide you with The Key Facts About Our Services document which will provide all the areas that they'll give you advice in.
What service can I expect from an IFA?
The service that you'll get from your IFA will be agreed up front. You may want focused advice. You may only go in for advice in one particular area. If you want life insurance, for instance, you may say that you don't want them to talk to you about anything else. They would just look at your protection needs. Generally, an independent financial adviser will look at the whole of your circumstances across the board and review the sorts of products that you should be considering, if not taking out.
What are the risks of using an unauthorised IFA?
In the UK, all advisors have to be authorised. It is illegal for them to practice unless they are authorized. With authorized advisors, there is protection. There's an ombudsman service if you are not happy with the advice you've had. There's also a compensation scheme in the event that the firm does go bust and they can't meet their liabilities. If you use an unauthorised advisor, you don't get any of that protection at all. They're practicing illegally. Don't do it.