Can you have more than one financial adviser?
This guide explores whether you can use multiple financial advisers in the UK at the same time, including the legal position, the advantages and disadvantages, and practical tips for coordinating more than one adviser relationship effectively.
There are no rules preventing you from engaging the services of more than one financial adviser.
Using multiple advisers can be beneficial if you have a large and complex portfolio.
There is no one-size-fits-all answer when it comes to using one financial adviser or multiple.
Financial advisers can provide expert guidance on important money matters like pensions, investments and tax planning.
But can you work with multiple financial advisers at the same time, or should you stick to just one?
This article explores the pros and cons of using more than one financial adviser to help you decide the best approach.
Can you have multiple financial advisers?
Yes. There are no legal or regulatory restrictions preventing individuals in the UK from working with more than one financial adviser simultaneously.
It is completely legal and acceptable to receive advice from multiple sources if you wish.
Many wealthy individuals and those with complex financial affairs will often use a range of specialist advisers rather than relying on just one person or company.
Reasons for using multiple advisers include:
Accessing expertise in different areas (e.g. investments, tax, pensions).
Getting a second opinion on recommendations.
Comparing service levels and value for money.
Diversifying your adviser relationships.
Using separate advisers for different goals and assets.
Whether using one or multiple financial advisers is better depends on your circumstances and needs.
According to Unbiased data, pensions and retirement planning, wealth management and defined benefit collectively account for 56% of all financial advice enquiries in the UK, the three areas where consumers most commonly seek more than one specialist adviser.
Let's weigh up the potential pros and cons of taking advice from multiple sources.
What are the advantages of using multiple financial advisers?
There are several advantages to using more than one financial adviser in the UK.
Using multiple financial advisers gives access to specialist expertise
No single adviser can be an expert across all areas of financial planning.
By using multiple advisers, you can pick specialists in the specific areas relevant to your situation - e.g. one for retirement, and one for estate planning.
When should you get a second opinion from a financial adviser?
Getting a second opinion on a big financial decision can make sense - for example, transferring a defined benefit pension or selling a family business.
Receiving advice from different professionals provides an alternative perspective. This can give you confidence that the strategies recommended are prudent. A second opinion acts as a sense-check and makes sure you understand any tax implications.
How using multiple advisers can improve the quality of financial advice
With contrasting viewpoints and solutions offered, you have a better chance of finding the optimal strategy for your goals and risk tolerance.
Compare costs and value
Getting advice costs from various firms allows you to ensure you're receiving fair value. This competitive tension could save you money in the long run.
Diversify adviser relationships
Using multiple advisers reduces an overreliance or potential conflicts of interest at a single firm. It provides a backstop if you're not satisfied with one adviser's service.
What are the disadvantages of using multiple financial advisers?
Using multiple financial advisers also carries several potential disadvantages worth considering.
Increased costs and time
Engaging multiple advisers means multiplying any fixed costs or hourly rates you're paying. It's also more time-consuming to manage different relationships.
Conflicting advice
You may receive contradictory recommendations from advisers. Then whose advice takes precedence? This could cause confusion or difficulties in your planning.
Communication challenges
Advisers may not effectively communicate or have a blinkered view of your whole financial picture if they are unaware of arrangements with other advisers.
Duplication of effort
You may end up duplicating the same informational requests or paperwork across multiple advice firms, creating unnecessary hassle.
Concentration risk
Concentration risk refers to the danger of having too much of your wealth invested in the same funds or sectors, which can occur when multiple advisers independently make similar investment choices without being aware of each other's decisions.
If you have several managers overseeing your assets you could end up with a dangerously concentrated portfolio without realising it, if both choose to put your wealth in the same funds or sectors.
You can mitigate this by having a holistic view of your investments yourself but it can be complex.
Why using multiple financial advisers can reduce overall accountability
With many separate parts involved, there is less clear end-to-end accountability for the totality of your financial affairs compared to using a single adviser.
The pros and cons of multiple financial advisers can be summed up in the table below:
| Single wealth manager approach | Multi-adviser approach | |
|---|---|---|
| Fees | Single fee | Possibility of paying higher fees for duplicated work |
| Portfolio oversight | Holistic view of all investments and zero risk of asset overlap | A fragmented view that requires client coordination |
| Specialist expertise | Broadly generalised across UK investment types | Focus and knowledge on specific niches including overseas |
| Accountability | Single point of failure or success | Diffused liability might make it harder to claim compensation if there are problems |
| Admin burden | Consolidated tax certificates & reporting | Multiple platform logins and annual reports |
Learn more: How many financial advisers are there in the UK?
Top tips for using multiple advisers
If you decide to use more than one financial adviser, follow these tips to maximise the benefits and minimise the downsides:
1. Coordinate your advisers
Facilitate communication between your advisers to ensure joined-up, consistent advice. Request that they share information relevant to your financial plan.
2. Designate a lead adviser
Have one adviser take the lead on your overall affairs. This creates clearer oversight, and someone is ultimately accountable.
3. Define remits
Be clear which areas each adviser is responsible for advising on to prevent overlaps and conflicts.
4. Disclose fully
Tell each adviser about the other professional relationships to avoid conflict issues or blind spots forming in their advice process.
5. Negotiate fair rates
Push for fee discounts based on using multiple advisers from one firm, or leverage better pricing.
6. Review regularly
Periodically take stock of whether each adviser relationship is still necessary and providing value for money.
With some pragmatic coordination and communication, you can gain the advantages of using multiple advisers while avoiding potential pitfalls.
When might multiple advisers be beneficial?
Using multiple financial advisers is most beneficial for those with large, complex portfolios spanning different asset types, tax wrappers, or multiple jurisdictions.
For example, you may use:
A UK financial planner for managing your domestic tax, investments and retirement planning.
A US adviser for managing your American investment accounts and tax obligations.
A UK accountant for dealing with business and personal tax affairs.
An independent investment manager for managing part of your portfolio.
A solicitor to advise on inheritance tax and draft your will.
Bringing in advisers to provide specialised guidance as needed can help achieve your goals in a joined-up way.
High net worth individuals with significant wealth may choose to have separate advisers for different family members.
Tax wrappers are financial products such as ISAs and pensions that shelter investments from certain taxes.
Is one adviser ever better than using multiple?
While some investors benefit from using multiple advisers, others may be better served by having a single, comprehensive financial planning solution.
One adviser could be preferable if:
Your finances are relatively straightforward.
You want a fully joined-up financial strategy.
You prioritise simplicity and efficiency.
Your adviser has multi-disciplinary expertise.
You build a strong relationship with one adviser.
Working exclusively with a single financial adviser could provide:
Clearer accountability for your overall plan.
Simpler coordination as a single point of contact.
Integrated strategies across all financial needs.
Potentially lower ongoing advice costs.
An experienced financial planner from a large firm may offer a one-stop solution spanning investments, pensions, tax planning and estate management.
Finding the right approach for you
There is no one-size-fits-all answer when it comes to using one financial adviser or multiple.
The optimal approach depends on your unique requirements, preferences and the complexity of your personal financial situation.
Consider factors like:
The breadth of your advice needs.
How intricate your financial affairs are.
Whether you need specialist expertise.
Your budget for professional advice fees.
How much time you can spare coordinating advisers.
How much you want to be involved.
Most importantly, prioritise working with financial advisers who have appropriate qualifications and experience, robust processes, and with whom you can build a trusting relationship over time.
Continuously assess whether your chosen adviser structure is still fit for purpose and delivers value.
The optimal number of advisers may change as your circumstances evolve.
Get expert financial advice
Whether you choose to work with one trusted adviser or several specialists, the key is ensuring you receive clear, qualified and tailored guidance for your unique circumstances.
Professional financial advice can help you avoid costly mistakes, uncover opportunities you may not have considered, and give you confidence that your decisions are aligned with your long-term goals.
By regularly reviewing your arrangements and choosing advisers with the right expertise and credentials, you can build a financial strategy that evolves with your life and provides lasting peace of mind.
Unbiased can help quickly match you with a qualified financial adviser today.
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