Good financial advice can be genuinely transformative. Bad financial advice has cost UK consumers billions. Knowing how to find the former and avoid the latter is genuinely valuable.
- The regulatory baseline
- Restricted versus independent
- Qualifications and experience
- How advisers charge
The regulatory baseline
All financial advisers must be authorised by the FCA. Check the FCA register at register.fca.org.uk before engaging anyone. An unregulated adviser offers no consumer protection.
Restricted versus independent
Independent advisers (IFAs) can recommend products from the whole market. Restricted advisers can only recommend from a limited range. Always ask whether an adviser is independent or restricted.
Qualifications and experience
Look for Chartered Financial Planner (CFP) or Chartered status, or at minimum the Diploma in Financial Planning. Experience in your specific area of need matters too.
How advisers charge
Advisers must charge fees rather than commission. Typical structures include fixed fees for specific advice, hourly rates (£150-£350), or a percentage of assets under management (0.5-1%). Get a clear fee schedule before engaging.
Free guidance
Pension Wise offers free government-backed guidance for over-50s. MoneyHelper provides free phone guidance on a range of financial topics.
Bottom line
Verify FCA registration, understand the fee structure, and interview more than one adviser before committing. A good adviser at key financial decision points is worth paying for.