Decisions about your financial future are among the most important you will ever make. Unless you are extremely confident in your level of knowledge, making those decisions without professional advice can be risky. Your plans are much more likely to be realistic and achievable when they are based on knowledge and expertise.
A qualified financial adviser can use their years of experience to help you make well-informed choices, balancing your short-term priorities with your long-term goals.
Keep in mind that financial advisers don’t work for us. They work for you.
Broadly speaking there are three types of adviser authorised by the FSA. You should consider which type is best suited to your long-term needs.
Independent financial advisers are unbiased. They have no contractual ties to the providers (such as insurance companies) whose products they recommend.
Multi-tied advisers usually operate in high-street banks or building societies. They have contractual obligations to a limited range of providers and can only advise on their products.
Single-tied agents usually operate in high street banks or building societies. They have an obligation to a single provider. They only offer advice on the products for that company. In this way, single-tied agents are not working for you, but for the company to which they are tied.
In 2013, new regulations will change the types of advisers available. Essentially this means that advisers can only call themselves independent if they offer products and solutions from the full market of different providers.