Choosing an IFA
- When looking for advice on one category of product, be aware that an adviser may not be able to offer independent advice on every sector. An organisation can offer different types of advice, such as ‘whole of market’ advice on mortgages, but may only offer tied advice on investment products.
- Always visit the IFA’s premises, so that you can get a good feel for how professional an organisation it is.
- If you go back to an IFA you have used before, double check that it has not changed its status under the new system. Some IFA groups may have given up their independent status and switched to multi-tie arrangements. They should spell this out to you, but it is better to be sure by asking.
- Also check that your IFA is authorised. IFA Promotion carries details of around 9,000 IFAs on its database, all of whom are continually verified.
To improve your chances of finding an IFA that matches your requirements, and to be 100% confident that they have a high level of competence in the area you want advice on, it is important to consider an IFA’s qualifications.
Basic qualifications:
All financial advisers, whether tied or independent, are required by their regulator, the FSA, to hold the Financial Planning Certificate or the Certificate in Financial Planning before they are allowed to provide financial advice. Advisers with these benchmark qualifications are also obliged to keep up with relevant financial developments throughout their career, but in addition many opt to take advanced qualifications.
Advanced qualifications:
An ‘alphabet spaghetti’ list of initials after an adviser’s name does not necessarily mean that much in terms of their advanced training. Sometimes the letters do not even refer to specific qualifications, simply membership of a certain body, so it’s worth asking questions and doing a little homework.