The short answer is to use a completely independent Financial Expert, investigate them thoroughly and be sure to understand any product you buy. Boatman Financial
However many people are unsure just what is persistent Financial Advisor or IFA so I will describe the kinds of Financial Advisor, how persistent Financial Advisor is different from the other types of advisor and the obligations to a consumer.
Precisely what is an Independent Financial Advisor?
A completely independent Financial Advisor (IFA) provides financial planning, offers impartial advice and recommends suited financial products from the complete UK market.
All IFAs are regulated by The Financial Service Authority (FSA) which requires them to hold strict qualifications and show a high level of competence.
The term Independent Financial Advisordates from 1988 when the united kingdom federal government introduced a polarisation program where an Advisor was either tied to just one insurer or was a completely independent practitioner.
Since 2005 the united kingdom market has been depolarised. There are now four type of Advisor.
Self-employed financial Advisors who work with products from the entire financial market and allow consumers the option of paying by payment or commission.
Whole of market Advisors, who use one company but only on a commission most basic.
Multi tied – work for more then one financial organisation.
Tied – work for one company, typically a high streets bank.
When Choosing a Financial Advisor ask whether he or she is independent, multi-tied or attached.
What qualifications does an Independent Financial Advisor need?
There are no placed entry requirements for becoming a financial Advisor. Various employers look at a strong qualifications in sales, financial services or customer service to be more important than formal qualifications. However for a person to be allowed to practise as an Independent Financial Specialist the Financial Services Power (FSA), requires the pursuing qualifications.
The basic level skills are the
Financial Organizing Certificate
Certificate in Monetary Planning (CertPFS
Both are issued by Chartered Insurance Institute (CII) and are about similar to a challenging GCSE. Treat them appropriately.
The most common advanced qualifications are
Advanced Monetary Planning Certificate (AFPC)
Authorized Financial Planner licence.
IFAs with higher level professional qualifications may have the letters APFS or FPFS after their names.
What about high level professional qualifications?
The highest professional status for an IFA is a Chartered Economic Planner which was lately introduced.
Additionally to these qualifications the FSA requires all IFA to go through Continuous Professional Development (CPD) to keep upto time with developments in the profession.
Throughout their job an IFA may take many advanced plus more dedicated qualifications to develop specific areas of expertise. You should ask your IFA about them as they or she will gain the greater advanced qualifications as their career progresses making qualifications an useful standard of an Advisor’s specific expertise and experience.