10 questions you must ask to find the right financial adviser

1) Are you independent?

Broadly speaking, there are two types of advisers: independent and restricted.

Restricted advisers are usually tied to one provider. As such, they can only advise you based on what their company has to offer. They can’t recommend products or solutions from across the entire market.

On the other hand, an independent adviser has a regulatory requirement to provide advice that’s in your best interest. They have access to the entire marketplace of financial solutions, and will choose the options that are right for you.

AGILITY says: We’re completely independent and free from restrictions of any kind, so you can trust that we’ll always work for you and you alone.

2) How do you earn your fees?

Since 2012, commission has no longer been payable to financial advisers setting up new investment products on your behalf.

The financial advice world in the UK now operates on a fee-charging basis. These fees will be agreed with you at the outset, with nothing payable to the adviser which hasn’t been agreed by the you.

In the rare instances that commission might apply, this must be discussed with you in advance.

AGILITY says: We earn our money from fees rather than commission 99% of the time (and will tell you beforehand if ever this isn’t the case). That means you know we aren’t trying to “sell” you anything other than sound, personalised advice.

3) What will the total costs be?

Always ask the adviser for an indication of how much their fees are likely to be before you get into specific detail.

Some advisers work on a percentage basis, others on a monetary amount. Either way, it’s important to understand the specifics, since initial advice fees can range from 1% to 5%.

No matter the charging model, remember to compare apples with apples. Sometimes, paying a higher fee gets you a better deal, so its not just about cost, its about the value that you can obtain.

AGILITY says: If you choose us, you’ll pay an agreed-upon fee for a personalised financial plan and our ongoing support in delivering it. Contact us for a quote, or see our fee approach page for more information about what you’ll pay for and why it’s worth it.

4) What are your qualifications?

Every adviser in the UK must be qualified up to a minimum level. Many even have a higher level of qualification. The minimum benchmark qualification is a diploma, classified as DipPFS or DipFA.

The highest level of qualification is either a Chartered Financial Planner or a Certified Financial Planner.

Anyone claiming to be an adviser that doesn’t have any of these qualifications should be treated with caution. Your money is only protected by the Financial Conduct Authority if you deal with a fully qualified professional.

AGILITY says: Our director and financial adviser Alan Drysdale is highly qualified, and you can view Alan’s profile page for his full qualifications list.

5) How much experience do you have?

You need to understand how long your adviser has been providing financial advice to individuals like you. That isn’t the same thing as knowing how long they’ve been working in financial services.

Several years’ experience is preferable. But with older advisers, it’s also important to find out when they plan to retire. If they intend to sell their business soon, you’ll need to find a new adviser, or be stuck with whoever they sell to.

AGILITY says: Every member of our team has spent years working in and studying the financial services profession. Visit our team page for more detail.

6) How will my relationship with you work?

It’s crucial to understand what an adviser will do for you, how they’ll communicate, and how often you’ll speak.

Do they only provide advice digitally or in face-to-face meetings, or a combination of both?

Are you sure you trust them with your financial goals in good times and bad?

How will they manage your pensions and investments for you?

Don’t move forward until you’re confident all these questions have been answered.

AGILITY says: As our client, you’ll follow a simple five-step process on your journey to financial peace of mind. See the client journey page to discover more about what’s involved.

7) What’s your investment philosophy?

Most advice firms offer a range of risk-assessed investment portfolios. These cater from cautious investors all the way to those with a more aggressive outlook.

There are various alternative ways your pensions and investments can be managed, so it’s vital you know how the adviser firm will work in this regard.

Some advisers have their own in-house investment proposition. Others outsource this to a third party. The type of proposition will have an impact on the overall cost of owning pensions and investments, and on investment performance.

AGILITY says: With us, you’ll get an in-depth assessment in the form of an investment questionnaire. We’ll use this to help build a diversified, risk-rated portfolio that suits your needs. Contact us if you’d like to arrange a meeting to learn more.

8) Do you only recommend regulated investments?

Only regulated investments are covered by the regulatory system. Any unregulated investment is unlikely to be protected by either the Financial Conduct Authority, the Financial Ombudsman Service, or the Financial Services Compensation Scheme.

Most good advisers won’t give advice on unregulated investments due to the risks.

AGILITY says: When you work with us, you’re dealing with a fully regulated firm, and one directly authorised by the Financial Conduct Authority. View our entry on the FCA register to learn more about the company and the standards we uphold.

9) What types of people do you work with?

Some advisers are generalists and will work with anyone.

Others specialise in a specific niche, and become experts at helping people that fit this.

So you need to know whether your adviser’s existing clients are people like you.

It’s worth finding an adviser that understands the specific issues you wish to deal with. In many cases, they’ll understand the problems better than you, since they handle similar clients with related issues and objectives.

AGILITY says: People from Beaconsfield, Amersham, and beyond have trusted in our advice for decades. We’re delighted to work with people who are nearing retirement, planning for retirement, and investing in their future, and we also help with workplace solutions for employers. View the “How we help” page to find out more.

10) How do you invest your own money?

This final point is arguably the most important.

If your financial adviser invests their own money completely differently to the way they’ve advised you to, you need to be clear on the reasons. Do they just take a blanket approach and ignore different appetites for investment risk?

Financial advice should be personalised, not boilerplate.

AGILITY says: There’s no smoke and mirrors with us. Arrange a meeting with our director and financial adviser Alan Drysdale, and he’ll happily go into great detail about his personal investment approach.