Ian Thomas, Pilot Fiancial Planning
'10 Questions to Ask Your Financial Adviser '
Are you looking to hire a new financial adviser? Or maybe you’re reviewing the value you receive from your current bank or stockbroker. If so, here are some questions that you may find useful to help you identify which firm could offer exactly what you’re looking for.
1. What, specifically, are the services I will receive?
• Do they offer an impartial financial planning service, incorporating all aspects of your finances (ie. not simply focusing on those areas where they can sell investments or other financial products)?
• What is the process for reviews and how frequent are they?
• Who will carry out the reviews and how will the advice be delivered (eg. face to face/written report/etc.?)
• What are their specialisms?
2. What qualifications & professional memberships do you hold?
• Chartered Financial Planner is the premier technical qualification. Issued by the Personal Finance Society. The equivalent of an undergraduate degree and other professional qualifications, eg. Chartered Accountant or Solicitor (LLB).
• Certified Financial Planner (CFPCM) is the preferred qualification of many leading financial planning professionals. A similar status to Chartered but with a greater emphasis on the ability to deliver a holistic financial plan. Issued by the Institute of Financial Planning.
• Diploma in Financial Planning (Dip PFS, or Dip FA), or equivalent, is the minimum qualification required to operate as a regulated financial adviser after 1st January 2013.
• Can you see a copy of their Statement of Professional Standing (mandatory from 1st January 2013)?
3. What is your previous experience?
• How long have they been in financial services?
• Who were their previous employers?
4. Is your business able to offer independent advice?
• If not, what are the restrictions on your advice?
5. What does your typical client look like?
• Can they give you examples of existing clients who are in a similar situation to you?
• Are you able to obtain references?
6. Do you have a clear investment process?
• Is this documented & can you obtain a copy?
• Is the process evidence-based and repeatable?
• Has it delivered consistent, measurable results on a risk-adjusted basis?
7. What will I pay?
• How are fees calculated (eg. time-cost/fixed fee/percentage of assets invested)?
• Does the fee structure incentivise the sale of a product (eg. only apply if you buy something), or are you paying for truly unbiased advice?
8. How are you remunerated?
• Does the business receive any other form of income, other than from your fees (eg. commission on previous products)?
• Are you comfortable that they are rewarded by delivering value to you, rather than by other incentives (eg. sales targets)?
9. What makes you different?
• What is the business’ unique selling point and is this what you are looking for?
10. And finally (a question for yourself): Can I work with this person?
• Do they explain things in terms you can understand?
• Are they genuinely interested in your objectives and concerns, or just ‘going through the motions’?
• Would you trust them to look after you widow/widower/dependants?
• Could you become professional friends?
I
Contact Ian Thomas at Pilot Financial Planning:
08453 712 808, ian@pilotfinancialplanning.co.uk
www.pilotfinancialplanning.co.uk
Pilot Financial Planning 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.
First Published December 2013 By The Dart