Starting off on the right foot – choosing an IFA

20 April 2011

It’s suggested that one of the most important decisions you will make when it comes to financial planning is choosing the right person to help you organise your financial affairs. So with this in mind here are a few helpful hints and tips on choosing the IFA that’s right for you.

With more than 8,000 IFA firms across the UK, selecting the right person to suit your financial needs may seem like a daunting task, especially when there are so many to choose from. A good place to start is by asking friends, family and work colleagues about their experiences. Personal recommendations will help you understand what to expect and whether your financial needs suit a particular adviser. The consumers Association has a site called Which? Local. Which? Local is a free website for subscribers to Which? (“Which? members”). The site is for Which? members to recommend local service providers that they have used and rate them.

Think about what’s important to you; we all have preferences. You may want to consider location – is it important that your IFA is within a ten mile radius of your home or work? Think about the philosophy of your IFA – do you only want someone who has a proven investment strategy or someone who feels they can identify the next best thing?

Other important factors to consider are qualifications and areas of expertise. When it comes to qualifications, the most easily recognisable is the Chartered Financial Planner qualification, though the Globally recognised Certified Financial Planner qualification is also becoming more widely recognised as a sign of quality.

The most basic qualification and one which all qualified IFAs in Britain are required to hold by the regulator, the FSA, is a Certificate in Financial Planning (Cert FP). Why not check out an IFA’s website for a clearer view on their qualifications, some advisers go on to specialise and become an expert in one area, such as mortgages or pensions.

Once you’ve narrowed down your search, why not meet with the IFA? A good relationship is important and you need to feel comfortable around them, after all they will be helping you make some important, if not crucial, financial decisions. You need to feel confident to ask questions if you don’t understand anything and an initial meeting can help you address any niggles you have and aid you in making that important decision. Finally if you still need further reassurance, why not ask to see some testimonials from past clients, this way you can see whether the proof really is in the pudding.