Until recently, each IFA was required to supply two ‘key facts’ documents entitled ‘About our services’ and ‘About the cost of our services’ outlining the adviser’s payment methods and product and service areas they can advise you on. While The FSA has recently scrapped these two documents, this however does not mean that your IFA does not have to provide you with the relevant information – it just may not be in these universal ‘key facts’ documents.

Customers will still receive the details of the adviser’s charges at the moment they first seek the advice. Other documents will also be provided up front to spell out whether the advice is offered on products from a single provider, from a limited selection of providers or from the whole market.

This information makes it easier for the consumer to shop around for a competitive service and to know the cost of advice from the outset, and most importantly, assess the value of advice upfront.

This information should encourage people to shop around for the financial adviser they feel is offering them the most competitive deal.

All financial advisers must hand you this information up front for you to look at before going any further. Armed with these details you can ask your IFA to explain the charges he or she will make and choose to buy elsewhere if you think it may be better value. This system will also reveal where independent advice is better value than other types of advice.

Under its recent Retail Distribution Review (RDR), the FSA outlined proposals to change the way the financial advice market is structured. The RDR is currently in its consultation period and we will update this guide if there are any changes to the current situation.