How to check a financial adviser and how they're regulated in the UK
If you’re looking for a financial adviser, it’s worth checking their qualifications and whether they are regulated by the Financial Conduct Authority (FCA). We reveal what you need to know.
Many people find it difficult to discuss money with family and friends, let alone a qualified expert they’ve just met.
While it’s understandable to be nervous about planning your financial future with a financial adviser, there are many benefits to doing so.
We explore what a financial adviser is, what qualifications they should have and how to check if they are regulated by the FCA.
A qualified adviser can help individuals achieve their long-term financial goals.
A financial adviser must have specific qualifications and be regulated by the FCA.
You can check if a financial advice firm or individual is regulated by the FCA by checking the FCA register.
You can quickly find an FCA-regulated financial adviser via Unbiased.
What is a financial adviser?
A financial adviser helps individuals achieve their long-term financial goals by assessing their unique circumstances and recommending the most suitable course of action.
They can help in many areas, such as:
Pensions and pension consolidation
Investing
Buying a home
Equity release
Insurance protection policies
While financial advice does incur a cost, you should be able to obtain details of the fees during your initial consultation. The cost of an adviser will depend on what you need help with.
What qualifications should a financial adviser have?
A financial adviser must have at least completed a Level 4 diploma in regulated financial advice that is recognised and approved by the FCA.
They must also have a Statement of Professional Standing (SPS), which must be reviewed annually. This helps ensure the financial adviser continues to meet professional standards.
An SPS means a financial adviser has a FCA-approved Level 4 diploma, completed continual professional development to ensure their knowledge and skills are up to date, and follows the regulator’s standards and code of ethics.
It also means the adviser has completed at least 35 hours of professional training each year.
Unbiased ensures all financial advisers available via its platform are regulated by the FCA.
Some advisers may achieve higher qualifications than the Level 4 diploma by choosing to become a chartered financial planner or certified financial planner.
Are financial advisers regulated?
As mentioned, financial advisers are regulated by the FCA to ensure they meet the required standards.
You’ll also benefit from some protections if you use an FCA-regulated financial adviser, as you can complain to the Financial Ombudsman Service (FOS) if you’re unhappy with the service provided.
If a financial adviser is not registered with the FCA, you can complain to the FCA, although all advisers should be registered with the regulator.
How do I verify an adviser’s qualifications, and if they are regulated?
Firstly, you can check the qualifications of a financial adviser by asking them to show you a copy of any certificates and qualifications.
For added peace of mind, you can check whether a financial advice firm is registered by the FCA via the Financial Services Register, which confirms if a firm or individual is authorised, and if you could expect support from the FOS or the Financial Services Compensation Scheme (FSCS).
The FSCS offers protection when financial firms fail. For example, if a financial firm you’re using goes out of business and cannot pay your claim, this scheme can offer compensation.
The FCA’s Financial Services Register provides insight into the regulated activities that a company or individual can offer, including confirming the regulated staff at larger firms.
The register can be used to search to confirm that the firm or individual:
Is listed on the FCA register
Is regulated to provide the services you’re planning to use
Is legitimate by checking that you have the correct contact details
The last point is particularly important as scammers can pretend to be a legitimate firm, so checking any contact details can be useful.
All financial advisers available via Unbiased are FCA-regulated, so you can have peace of mind when using the platform.
Get expert financial advice
Finding a trusted financial adviser can be tricky, but it doesn’t have to be.
Unbiased can help you quickly find a qualified and regulated financial adviser who can help you reach your long-term goals, whether it’s retirement planning, pensions, investments, insurance or more.
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