Five things you didn’t know about financial advice – and five things you should

There has never been a better time for consumers to seek out financial advice than when the UK’s economy is up to its knees in worry and uncertainty. But, to the uninitiated, even the financial advice sector itself can prove a myriad of confusion. But don’t let the industry you turn to for help stump you before you start. Instead, check out the five facts you didn’t know about financial advice – and the five things you should:

FIVE THINGS YOU DIDN'T KNOW ABOUT FINANCIAL ADVICE

1. The days of the ‘wide boy’ are over: 

Now all financial advisers are regulated by city watchdog, the Financial Services Authority. This means that they need a qualification appropriate to the service they are offering in order to be signed off as competent.

2. You can ask what they earn: 

Forget about being rude – the FSA states that, if an adviser is earning commission from selling you a financial product, they will have to disclose how much.

3. You don’t have to meet: 

If you don’t have time or inclination to meet face-to-face with your adviser, these days you can conduct the whole thing by phone or even online.

4. You can find the perfect match: 

The financial advisory industry is not as stuffy as it used to be and advisers in 2009 come from all walks of life. So if you want to speak to a Sharia-compliant female adviser who specialises in investments, you can. Search for your perfect adviser using the Rubii search facility.

5. You can vet your adviser first online: 

The financial advice sector shouldn’t be different to any other in terms of swapping experiences online. Check out what other people thought of the service here before making an appointment.

FIVE THINGS YOU SHOULD KNOW ABOUT FINANCIAL ADVICE

1. Not every adviser advises on everything: 

Mortgage advisers and insurance brokers for example, can advise on mortgages and/or insurance but are not allowed to offer advice on investments and pensions.

2. Your adviser may not be impartial: 

Only independent financial advisers – known as IFAs – will offer you financial products and deals from the whole of the market. Multi-tied advisers will recommend products from a limited selection of providers while tied advisers, as it says on the tin, will offer products from a single provider. 

3. You don’t have to pay upfront: 

Providing you use an IFA you can choose whether to pay a fee to your adviser or allow them to take commission from the provider they refer you to – or a combination of both. It’s your call.

4. Not all advisers have the same qualifications: 

While every adviser will need a ‘certificate level’ such as an FPC (Financial Planning Certificate) to practice, others will have taken additional qualifications to allow them to specialise in specific areas – equity release for example. Make sure you find the right adviser for your needs on the Rubii adviser search.

5. You can complain for free: 

Providing your adviser is registered with the FSA (on Rubii you can view the FSA number on the adviser's profile page), if you are unhappy with the service you receive, you can take your complaint to the Financial Ombudsman Service. However, this is only in the event that a resolution with the adviser has failed first.