More people in the UK are turning to a Financial Adviser for help with Savings and Investments

Printer-friendly versionPDF version

As a result of the recent economic crisis and an increasing array of financial products and services on the market, more people in the UK are enlisting an independent financial adviser to help with their savings and investments.

Maidstone, Kent, January 21, 2011 (PressReleasePoint) -- As a result of the recent economic crisis and an increasing array of financial products and services on the market, more people in the UK are enlisting an independent financial adviser to help with their savings and investments.

These days it has become much easier to do your own financial planning, provided you have the time to research and understand some of the more complex financial products available. However it can sometimes be more reassuring to get some expert advice from someone who does this for a living, so what should you know before you start looking for a financial adviser?

1. Their qualifications

The minimum qualifications a financial adviser should hold are the three levels of the Financial Planning Certificate, which ensures they have an overall knowledge of personal finance. A better-qualified adviser will also hold the Advanced Financial Planning Certificate giving them more in-depth knowledge.

2. Different types of financial adviser

Following the introduction of depolarization in 2007, there are now three types of financial adviser; fully independent that can deal with any financial provider, tied agents that sell the products of one company and multi-tied agents who sell the products of a limited range of companies.

3. How an independent financial adviser works

An independent financial adviser researches the whole market to find the product most suited to your needs or offers the best investment performance and are required to provide details and information to justify their choice.

4. Limitations of a tied-agent

Typically, most banks and building societies are tied-agents, meaning that the advisers working for them often have basic qualifications and are only able to recommend the products their tied company sells. This does not always mean that their customers get the best or cheapest deals available on the market.

5. How a multi-tied agent operates

A multi-tied agent has arrangements with several financial providers as opposed to just one and can make recommendations about any of the products from those companies, but again these may not be the best or cheapest products available.

6. If things go wrong

Finding a suitable financial adviser can take time and getting recommendations from others is often the best way. A good adviser should help you avoid making mistakes, and help you out a great deal with products like annuities and equity release but if they do not then you are usually covered by a compensation scheme.
PressRelease Distribution By PressReleasePoint