If you’ve never sought financial advice before, it can be difficult to know who to choose.
We’ve taken the time to list seven key things you should always look for when looking for a financial advisor.
Look for Local Recommendations and Reviews
When it comes to choosing something as important as a financial advisor, always reach out and ask for opinions and recommendations. If you have used LFBB legal services, ask us about our financial advisors. Look for public reviews both on social media as well as Google, for example. Also – why not ask family and friends for opinions, too?
Look for Qualifications
Regulated financial advisers are required to hold a minimum level of qualifications to provide advice. Always ask to see proof of your financial advisors’ qualifications and their Statement of Professional Standing (SPS) to ensure that their qualifications have been checked, they have kept their knowledge up to date and they have complied with the Statements of Principle and Code of Practice for financial advisors.
Look for Quotes
Yes – of course – it is well worth looking for financial advice quotes as a priority. More importantly make sure that any quotes provided are transparent and there are no hidden charges. In many cases, this will be one of the first things you compare between while looking around. Be willing to ask the difficult questions. How much will X cost me per month? What do you charge for Y? Beware as some financial advisers will try and tie clients in with hidden penalty clauses if they cancel the agreement or move to another financial planner. Also make sure that any ongoing cost quotes provided by financial planners include the cost of the adviser, the funds and any underlying product costs so that you get the full picture.
Look for Custody Holdings
Legitimate financial advisors will generally hold your money through a third party. This is safe and regulated. Always be sure to tread carefully when it comes to setting up your finances with an advisor who handles your money themselves. This could be a fraud risk.
Look for Financial Conduct Authority Regulation
Of course, you should only ever enter into an agreement with a financial advisor that has FCA backing. The Financial Conduct Authority works hard to support products which are legally above board, and which are fully regulated. This gives you a little more backing and confidence, too, as it means you won’t have to worry about what’s going to happen to your money in the long run. By seeking advice from a regulated financial adviser you will have extra protection under the Financial Services Compensation Scheme (FSCS) in the unlikely event that things go wrong.
Friendliness and Approachability
Yes – while this might seem like a little bit of an afterthought for some people, rapport is hugely important if you’re in the process of discussing your finances with a new professional. For most people, discussing their personal finances can be difficult. If you don’t feel that connection with a friendly advisor, it is simply time to move on. Usually a relationship with a financial adviser is long term. It is particularly important that in the first stages of contact make sure that emails and calls are returned quickly and efficiently – this can be an indicator of what you can expect going forwards.
Local Appeal
Lastly – always make sure that the financial advisor that says they are based in Sheffield are actually based there! This means that you should be able to physically visit their office for face to face consultations if you need to. Oddly enough, there are a few businesses who state they offer financial advice in Sheffield or elsewhere when they don’t – they simply want to appeal to people based in that given location.
Now you have the groundwork to find that perfect financial advisor – make sure to carefully assess your options. Contact LFBB Financial Planning for more details and do feel free to speak to us for a frank and open discussion about how we can help you.