How to find a good financial adviser in the UK.
How to find a good financial adviser in the UK.
Introduction.
In today's complicated financial world, having a trustworthy financial adviser by your side is more important than ever. A good financial adviser can help you make sense of things like investments, pensions, mortgages and planning the cost of long-term care. But, with so many financial advisers out there, how do you find a good financial adviser in the UK? This article will help you understand what makes a great financial adviser and guide you through the different types of advisers you might come across in the UK.
What are the different types of financial advisers in the UK?
It’s important to mention from the start that not all financial advisers in the UK are the same and not all financial advisers can advise clients on the same topics. As such, a 'financial adviser' is someone who can give you advice about money matters, but there is much more to financial advisers than that.
In essence, you will likely encounter the following descriptions when you are looking to find a good financial adviser in the UK:
A Financial Adviser.
A financial adviser is someone who is authorised by the Financial Conduct Authority to offer advice and guidance relating to your money.
An Independent Financial Adviser or IFA.
An IFA is a financial adviser that is not linked to a single source of financial products (like a bank) and can access financial products and services from the whole of the market, hence they are independent.
A Chartered Financial Planner.
A Chartered Financial Planner is a financial advisor, or IFA, who is the highest qualified practitioner of their profession. Chartered financial planners are members of the Personal Finance Society, have five years' relevant professional experience and hold the Advanced Diploma in Financial Planning (with a designation of APFS) or PFS Fellowship (with a designation of FPFS).
Over 5,000 Financial Advisors have achieved Chartered Financial Planner status. However, this represents less than a quarter of all the registered Financial Advisors in the UK, meaning Chartered Financial Planners are a prestigious group at the forefront of the financial advice profession.
Chartered Financial Planners may be independent or they may not be - if it’s not clear it’s best to check.
Should I choose one person or an advice firm with a team of advisers?
Who should you pick – a solo adviser or a larger company with lots of advisers? A solo financial adviser or IFA is someone you will be able to build a relationship with, however, a larger firm is more likely to have lots of experts with different skills, which could be handy if your money matters are complicated.
How do I find a financial adviser? Where to look for a good financial adviser.
Finding the right financial adviser for you may feel a little like searching for a needle in a haystack. But don't worry, we've got some tips to help you out. A couple of useful places to start are the Financial Conduct Authority (FCA) register and the Personal Finance Society (PFS) member search; on these websites, you can find all the registered financial advisers in the UK.
There are also independent platforms with reviews such as Unbiased and VouchedFor - in today's digital age, online reviews are your secret weapon. Websites like Google Maps will also have comments from clients who've already tried out advisers. Reading what they have to say can give you a real picture of what to expect.
An example of client reviews on Google Maps.
How do I know if I need a financial adviser?
The decision to consult a financial adviser is not one to be taken lightly, and you may be wondering whether your circumstances warrant professional advice. Below are some scenarios in which seeking an adviser’s expertise could be beneficial:
You have complex financial goals.
If you have intricate financial goals—such as early retirement, combining several pensions, buying multiple properties, or establishing trusts for inheritance—it may be prudent to consult a specialist who can guide you through the complexities.
You have investments that need managing.
Investing is not a simple endeavour, and the myriad of options can be overwhelming. An adviser can help you tailor an investment portfolio to meet your risk tolerance and long-term objectives.
You are going through substantial life changes.
Major life events like marriage, divorce, the birth of a child, or the death of a spouse often have significant financial implications. A financial adviser can help you navigate these changes and make adjustments to your financial strategy.
You need tax advice and planning.
Taxes in the UK can be complicated, especially if you have multiple income streams or own a range of assets. An adviser can provide expert insights on tax efficiency and how to navigate the UK’s tax system effectively.
You have a lack of time or knowledge.
Financial planning is time-consuming and requires a deep understanding of financial markets, tax laws, and other intricate details. If you lack the time or knowledge to manage your finances effectively, professional advice could be invaluable.
You worry about the future.
If you find yourself worrying about your financial future or feeling unsure about the decisions you are making, an adviser can offer reassurance and a well-structured plan.
You are affected by regulatory changes.
The UK’s regulatory landscape is constantly evolving, affecting pensions, taxes, and other financial products. An adviser will stay updated on these changes and can guide you accordingly.
How much money must I have to get a financial adviser?
The notion that financial advisers are exclusively for the ultra-wealthy is a common misconception. The reality is that people with various levels of wealth and financial complexity can benefit from professional advice.
It's worth noting that some advisers may have minimum asset requirements or fees that could make their services less accessible for those with fewer assets. Always be sure to inquire about minimum requirements when researching potential advisers.
If you have low to moderate assets (less than £100,000).
For individuals with low to moderate assets, some advisers offer a modular approach where you can pay for specific advice on a one-off basis, such as mortgage advice or a pension review. There are also robo-advisers to consider which are automated online platforms that provide basic financial planning services at a lower cost. However, it's important to note that robo-advisers are limited in their capabilities and might not offer the comprehensive and personalised service that a human adviser can provide.
If you have moderate to high assets (£100,000 to £300,000).
If you have a moderate amount of assets, generally considered to be between £100,000 and £300,000, the doors to more advisory services begin to open. At this stage, financial advisers can assist in more complex financial planning like diversified investing, tax-efficient savings and retirement planning. The adviser might charge a percentage of your total assets under management or a fixed annual fee.
If you have a high value of assets (Over £300,000).
For individuals with assets exceeding £300,000, you may be more suited to speaking to advisers who specialise in wealth management services, or who offer specialist services. These advisers offer a range of tailored solutions, including estate planning, tax minimisation strategies and bespoke investment portfolios. The fees may be a fixed annual charge or a combination of a fixed fee and a percentage of assets under management.
Free initial consultations.
Note that many advisers offer free initial consultations, which can be an excellent opportunity to assess whether their services align with your financial situation and goals. This can be particularly useful if you're unsure about the level of assets required for professional advice and is a useful service to decide whether you are likely to get on with the adviser.
How often do financial advisors beat the market?
A common question that arises when considering hiring a financial adviser is, "Can they consistently beat the market?" It's crucial to understand the role of a financial adviser in this context. Financial advisers are not stock pickers aiming to outperform the market. Their primary function is to guide you through the complexities of personal finance, manage risk, and help you meet your specific financial objectives. If you’re looking for someone to stock pick for you, you are best off looking for a stock-broker.
Financial advisers have to manage risk.
A competent financial adviser will conduct a thorough assessment of your financial situation, risk tolerance, and long-term goals. Based on this assessment, they can recommend a portfolio strategy and specific investments that align with your circumstances. The portfolio may include a diverse mix of asset classes like equities, bonds, real estate, and possibly alternative investments to balance risk and reward.
Financial advisers have no control over market performance.
It's essential to remember that financial advisers do not have control over market performance. Markets are influenced by a myriad of factors, including economic indicators, geopolitical events, and investor sentiment, among others. An adviser's role is not to guarantee high returns, but to help you make well-informed decisions that align with your financial goals and risk tolerance.
Benchmark your financial adviser against how well they help you meet your objectives.
While some financial advisers may occasionally help your money to outperform the market, it's not a sustainable expectation for several reasons. Firstly, beating the market often involves higher risk-taking, which may not align with your financial objectives. Secondly, outperformance in one period does not guarantee the same in subsequent periods. Thus, it's more productive to evaluate an adviser's performance based on how effectively they help you achieve your specific financial goals, rather than whether they can 'beat the market.'
Aligning your expectations with those of a financial adviser.
It's essential to align your expectations with the realities of what a financial adviser can provide. Their value comes not from outperforming the market, but from offering personalised, strategic advice that can help you navigate complex financial landscapes, make informed decisions, and achieve your financial objectives.
How much does it cost to get a financial adviser?
Understanding the costs involved in hiring a financial adviser is essential for making an informed decision. In the UK, the cost of advice can vary widely based on the complexity of your financial situation and the adviser's fee structure.
Knowing how much a financial adviser will cost is critical to assessing whether their services are suitable for your specific needs and budget. Whether it's a percentage of assets under management or a fixed fee, each structure has its advantages and disadvantages. Being informed about these fee structures will enable you to make a decision that aligns with your financial goals.
Below, we examine the most common types of fee structures you are likely to encounter: Percentage of Assets Under Management and Fixed Fees.
Financial advice fees based on a percentage of Assets Under Management (AUM).
One common fee structure is the percentage of assets under management (AUM). In this model, the adviser charges an annual fee based on a percentage of the total assets they advise you on. This percentage typically ranges from 0.5% to 1.5% per annum. For instance, if you have £100,000 invested and your adviser charges 1% AUM, you would pay an annual fee of £1,000.
Pros:
Has the appearance of aligning the adviser’s interests with your own: as your assets grow, so do their fees.
Provides a simplified, all-inclusive fee for ongoing advice and management.
Cons:
Lack of transparency in what you are actually paying in pounds and pence.
May be a mis-match with what you are trying to achieve and how you are being charged, particularly if your goals are not-growth orientated and an adviser’s role is not to beat the market.
May not be cost-effective for those with lower assets, as the fees can add up.
Can become expensive for high-net-worth individuals with significant assets.
Fixed-fee financial advice.
Another typical fee structure is the fixed fee model, where you pay a one-off or ongoing annual fixed charge for a specific service or services. Fixed fees can range from a few hundred to several thousand pounds, depending on the complexity of the advice you require.
Pros:
Provides transparency upfront about the cost of advice.
Suitable for one-time needs, such as retirement planning or mortgage advice, as well as ongoing needs.
Your assets under management don’t inflate your fee.
The way you are charged can be aligned to your objectives.
Cons:
Fees can escalate if additional services are required or if your situation is particularly complex.
Other financial advice fee considerations to bear in mind.
It's also essential to inquire about any additional charges, such as transaction fees or exit fees, which could add to the overall cost. Always request a comprehensive breakdown of all charges you may incur, as some may not be immediately obvious.
How do I look up a financial adviser in the UK?
Finding a competent and reliable financial adviser is a vital part of establishing a solid financial plan. But how do you go about locating one in the UK? Below are some crucial steps and resources you can use to find the right adviser for your needs.
Search the Financial Conduct Authority (FCA) register.
The first step in verifying the credibility of any financial adviser in the UK is to check the Financial Services Register maintained by the Financial Conduct Authority (FCA). This register lists all firms and individuals authorised to offer financial services and is a reliable source for confirming that an adviser is legitimately qualified and regulated.
Check with professional associations.
Associations like the Personal Finance Society (PFS) and the Chartered Institute for Securities & Investments (CISI) maintain directories of qualified advisers. Members of these associations are typically held to higher standards of competence and ethics, making them reliable options.
Use online platforms and tools.
Several online platforms can help you find an adviser based on your financial needs, geographic location, and other specific criteria. Unbiased.co.uk is a platform that offers a searchable database of advisers based on your needs and location. VouchedFor is another website where you can find reviews and ratings for different financial advisers. Websites like Google Maps will also have comments from clients who've already tried out advisers.
Look for referrals and reviews.
Word-of-mouth referrals can be invaluable in finding a trustworthy adviser. A good first stop should be to seek recommendations from friends, family, or colleagues who have similar financial objectives or complexities. You can then pay attention to online reviews and testimonials from other clients, but be cautious of excessively positive or negative feedback without sufficient context.
Book an initial consultation.
Many advisers offer a free initial consultation, which can be beneficial for evaluating their expertise, understanding their fee structure, and assessing your comfort level with them. Have a list of questions ready to gauge the adviser's competence, experience, and how they can assist with your specific financial needs.
At AV Trinity, we are based in Tunbridge Wells, Kent but serve clients across the UK. We advise on a broad range of financial subjects, from pensions and investments, to mortgages, care fees and divorce. You can quickly arrange a free initial consultation with us here or by clicking the button below.
What questions to ask prospective financial advisers?
When considering a financial adviser, it's critical to ask the right questions to ensure they're a good fit for your financial situation and goals. Here are some key questions you should consider asking:
What are your qualifications?
Always start by verifying the adviser's educational background and credentials. Make sure they are accredited by relevant bodies.
Are you regulated and registered?
Ensure that the adviser is regulated by the Financial Conduct Authority (FCA) or another reputable regulatory body.
What services do you offer?
Not all advisers offer comprehensive financial planning services. Some may specialise in areas like retirement, estate planning, or investments. Make sure their services align with your needs.
How do you charge for your services?
Advisers have different payment structures, including flat fees, hourly rates, or a percentage of assets under management. Understanding the fee structure can help you determine if the adviser is affordable for you.
Do you have experience with situations similar to mine?
If you have specific financial needs or are in a unique situation (such as nearing retirement, dealing with an inheritance, etc.), you'll want an adviser who has experience in those areas.
What is your investment approach?
Get an understanding of their investment philosophy and whether they are more conservative or aggressive in their approach. Make sure this aligns with your own risk tolerance and financial goals.
Can you provide client references?
It's a positive sign if an adviser can provide references from clients who have similar financial situations to yours.
How often will we meet to review my financial plan?
The frequency of meetings can vary from adviser to adviser. Some may want to meet quarterly, while others may find semi-annual or annual reviews sufficient.
How will our communication work between meetings?
Will they be available for phone calls or emails if you have questions or concerns? Clarify how proactive they will be about reaching out to you with updates or advice.
Do you work independently or as part of a team?
Some people prefer the one-on-one service of an adviser, while others like the diverse expertise that can come from a team approach.
Do you receive any commissions or incentives?
It's crucial to know if your adviser will benefit from recommending certain products or services, as it might influence their advice.
What is your process for dealing with market volatility?
This will give you an insight into how they manage risk and whether their approach aligns with your own comfort level and financial objectives.
By asking these questions, you can get a well-rounded view of prospective advisers, making it easier for you to choose the one that best suits your needs. Always remember, that the more transparent and forthcoming an adviser is in answering your questions, the more likely they are to be trustworthy and reliable.
Conclusion.
Finding a financial advisor is a significant milestone in managing your financial health and planning for the future. While the process can seem daunting, it's essential to conduct thorough research, especially if you’re new to financial management.
Checking an adviser's accreditation is crucial, and so is understanding how and how often they get paid. Fees can vary, so you'll want to get a clear picture of the costs involved.
Be sure to prepare a list of questions to ask a potential advisor to assess their suitability. Whether you're looking to focus on pensions, investments, or general wealth management, a good financial adviser can help you make the most of your finances. Starting this relationship sooner rather than later can provide you with a broader range of options and more time to achieve your financial goals.
What’s next?
If you need help or advice on your personal or business finances or if you want to consider investing to make your money work harder, you can get in touch with one of our advisors for independent financial advice. We offer a free initial consultation and although we are based in Tunbridge Wells, we advise clients across the UK.
Don’t forget, this article offers general financial information and should not be taken as personal advice. Remember that investments and pensions can go up and down in value, so you could get back less than you put in. Tax rules can change and the benefits depend on individual circumstances.
How to find a financial adviser FAQs.
When should you get a financial adviser?
There's no specific age, but if you have responsibilities beyond day-to-day budgeting, such as starting a family or planning for retirement, it's a good time to consult an adviser.
Financial advice can be beneficial at any age but is especially useful during life-changing events like marriage, childbirth, or inheritance, where your financial landscape becomes more complex.
> Get in touch today to arrange a free initial consultation.
When to find a financial adviser?
Complex financial decisions, life transitions, or feeling overwhelmed with financial planning are good reasons to seek professional advice to clarify goals and develop a tailored strategy.
> Get in touch today to arrange a free initial consultation.
Why get financial advice?
Quality financial advice can be an investment in your future. An adviser helps identify financial objectives, develop a strategy to achieve them, and guides you in making informed decisions.
> Get in touch today to arrange a free initial consultation.
Where to find a financial adviser?
You can find financial advisers through online directories, financial publications, or personal recommendations. Online platforms often allow you to filter advisers based on specialisation, location, and other factors.
> Get in touch today to arrange a free initial consultation.
How to find a financial planner for retirement?
Finding a financial planner for retirement involves a multi-step process. Start by asking for recommendations from friends, family, or colleagues who are already retired or are planning for it. Online directories can help you find advisers specialising in retirement planning. Make a shortlist and conduct interviews to ensure they understand your needs and goals. Lastly, check credentials and any available reviews or testimonials.
> Get in touch today to arrange a free initial consultation.
How to look up a financial adviser's license or accreditation?
You can check an adviser's licence and accreditation through regulatory bodies like the Financial Conduct Authority (FCA) in the UK. Their online register allows you to search by name, firm, or postcode, providing details on authorisations, and any disciplinary actions.
> Get in touch today to arrange a free initial consultation.
How do I make an appointment to see a financial adviser?
Making an appointment is straightforward. Many firms offer online booking on their websites, or you can call or email to arrange a meeting. Advisers often offer an initial free consultation to discuss your financial situation and the services they can provide.
> Get in touch today to arrange a free initial consultation.
What questions do I ask a financial adviser?
Ask questions like, "What are your qualifications?", "How do you charge?", "Do you have experience with situations similar to mine?", and "Can you provide client references?" to gauge an adviser's suitability.
> Get in touch today to arrange a free initial consultation.
How much does having a financial adviser cost?
The cost can vary depending on the complexity of your financial situation and the services required. Some advisers charge an hourly rate, others a flat fee, while some may charge a percentage of assets under management. Always request full disclosure of the fee structure, including any hidden charges, in writing.
> Get in touch today to arrange a free initial consultation.
How often do financial advisers get paid?
The frequency of payments to a financial adviser can differ depending on your agreement. Payments could be billed quarterly if they charge a percentage of assets under management. For hourly or project-based rates, you usually pay as the service is provided. Always clarify payment terms upfront.
> Get in touch today to arrange a free initial consultation.
What to look for in a financial planner?
Consider qualifications, experience, areas of specialisation, fee structure, and client reviews when choosing a financial planner. Also, check if their investment philosophy aligns with your financial goals.
> Get in touch today to arrange a free initial consultation.
How to find a financial adviser you can trust?
Trust is crucial when choosing a financial adviser. Look for verifiable credentials, transparent fee structures, and a willingness to provide clear explanations of their services, all in writing.
> Get in touch today to arrange a free initial consultation.
When to find a new financial adviser?
Signs that you may need a new adviser include poor communication, unclear or unjustified fees, or a failure to adapt strategies based on your changing needs.
> Get in touch today to arrange a free initial consultation.
How do I find a financial adviser firm near me?
A simple online search like "financial adviser near me" in search engines can yield local options. While face-to-face meetings can be convenient, don't limit yourself geographically as many advisers offer virtual consultations.
> Get in touch today to arrange a free initial consultation.
Find a financial advisor in Kent.
You can speak to our Chartered Independent Financial Advisors (IFAs) in Tunbridge Wells about a broad range of Pension, Investment and Wealth Management services. Based in Tunbridge Wells, we advise clients across Kent, East Sussex and the UK. We also offer a free initial consultation to help understand your finances and how we can help.
> Get in touch today to arrange a free initial consultation.
Find a financial advisor in Tunbridge Wells.
In Tunbridge Wells, our Chartered Independent Financial Advisers (IFAs) are available to discuss a variety of Pension, Investment, and Wealth Management services. We serve clients throughout Kent, East Sussex, and across the UK. Additionally, we provide a complimentary initial consultation to assess your financial situation and outline how we can assist you.
> Get in touch today to arrange a free initial consultation.
Find a financial advisor in East Sussex.
If you're in East Sussex, our Chartered Independent Financial Advisers (IFAs) can guide you through Pension, Investment, and Wealth Management options. Based in Tunbridge Well, we work with clients in the surrounding area and extend our services throughout the UK. A free initial consultation is offered to help understand your financial position and how we can contribute to enhancing it.
> Get in touch today to arrange a free initial consultation.
Don’t forget, this article offers general financial information and should not be taken as personal advice. Remember that investments and pensions can go up and down in value, so you could get back less than you put in. Tax rules can change and the benefits depend on individual circumstances.