How to choose the right financial adviser in the UK (2024)

FAQs

How to choose the right financial adviser in the UK? ›

Don't be afraid to ask an adviser about their qualifications and Statement of Professional Standing. To check a financial adviser is registered with the FCA see the Financial Services Register.

Don't be afraid to ask an adviser about their qualifications and Statement of Professional Standing. To check a financial adviser is registered with the FCA see the Financial Services Register.

Whatever they might be called, what all financial advisers in the UK do have in common is that they're regulated by the Financial Conduct Authority (FCA). This means there are rules they must follow when dealing with you.

Some financial advisors charge a proportion of the money that you want to invest. This averages around 2.4% of the investment for initial advice, followed by 0.8% a year for ongoing advice and management.

Ask how their service works. For instance, whether they offer once-off or ongoing advice. Request an outline of their fees and if they'll provide a quote for the advice before completing any work. It's also a good idea to ask how they're paid – whether they're salary-based, fee-for-service, or incentivised by bonuses.

Financial advice can make people, on average, nearly £48,000 better off in pensions and financial assets compared to those who don't take advice, according to the International Longevity Centre (ILC).

If you are looking for overall financial planning, it's best to find someone who is a CERTIFIED FINANCIAL PLANNER™ (CFP ®). If you need help with taxes, a Certified Public Accountant (CPA) is a good choice. Keep in mind that not all financial planners are certified, though.

When choosing a financial advisor, what should you look for? ›

If you're considering hiring a financial planner or advisor, it's important to not only look at that person's credentials, but also at factors such as their experience, communication style and how the advisor is compensated. For example, do you pay a separate fee for planning, or is it included with asset management?

Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Or, visit the SEC's Investment Adviser Public Disclosure (IAPD) website. Also, contact your state securities regulator. Check SEC Action Lookup tool for formal actions that the SEC has brought against individuals.

You can check our Financial Services Register (FS Register) to make sure a firm or individual is authorised. It will also tell you the activities the firm has permission for.

Very generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could also be higher, such as $500,000, $1 million or even more.

Financial advice can make people, on average, nearly £48,000 better off in pensions and financial assets compared to those who don't take advice, according to the International Longevity Centre (ILC).

If you're considering hiring a financial planner or advisor, it's important to not only look at that person's credentials, but also at factors such as their experience, communication style and how the advisor is compensated.

In the context of money, giving “Advice” is a regulated activity. Only firms that are regulated by the Financial Conduct Authority (FCA) can offer this.

In contrast to financial planners, financial advisers primarily focus on specific aspects of a client's needs such as life insurance or pensions. They analyse the market, evaluate options, and give advice tailored to a client's specific financial objectives and risk tolerance.