IFAs legitimacy?

[michael_JCWS]

What’s the best way to check the legitimacy of an IFA, I assume checking that they are registered with the FCA, but beyond that what can you do, especially given the amount of trust with your financial future and retirement planning you are placing in their hands

[mikeiow]

michael_JCWS said:

What s the best way to check the legitimacy of an IFA, I assume checking that they are registered with the FCA, but beyond that what can you do, especially given the amount of trust with your financial future and retirement planning you are placing in their hands

In reality, you’d probably want a recommendation to know anything of their backstory.
Check the FCA, check LinkedIn. Be very sure to check they really are Independent - some masquerade as that when they are not.

AI suggests the chunk below, but for all the words, it’s not adding a lot.

I would personally sanitise some information & post either here and/or on the MoneySavingExpert Pension forum (if related to that): plenty of helpful folk about, & money isn’t rocket science, despite the mystique FAs like to bandy about!
Also: check the Reddit financial flowchart - https://ukpersonal.finance/flowchart



To check an independent financial advisor, verify their authorization on the Financial Conduct Authority (FCA) Register, check their qualifications and Statement of Professional Standing, and ask for personal recommendations while also cross-referencing with sites like Unbiased. Before hiring, schedule an initial meeting to ensure you are comfortable with their approach and that they have expertise in your specific needs.

1. Verify authorization
Use the FCA Register: Check the Financial Conduct Authority (FCA) website's Financial Services Register to confirm the firm and individual are authorized.
Check business card: A fundamental rule is that an adviser should provide you with a business card containing the information needed to verify their authorization.
Confirm "Authorised" status: The advisor's name or firm should show "Status – Authorised" on the register. If not, ask for a good reason why.
Look for appointed representatives: Note that some firms may be listed as appointed representatives (ARs), which means they are working on behalf of another, principal firm.

2. Review qualifications and experience
Request qualifications: Ask to see their Statement of Professional Standing, which is an annually renewable certificate that confirms they meet minimum qualifications and adhere to ethical standards.
Ask about expertise: Inquire about specific qualifications that align with your needs, such as Chartered Financial Planner or a specialist in areas like long-term care or pensions.
Seek recommendations: Ask for personal recommendations from people you know, as this can give insight into the advisor's character and ability, but always verify the recommendation through the FCA register.

3. Meet for an initial consultation
Use the free meeting: Many advisors offer a free initial meeting. Use this to gauge if you are comfortable with their working style.
Prepare your information: Bring your current financial information and have a clear idea of your goals to discuss with the advisor.
Ask questions: Prepare questions to ask the advisor about how they can help you and what their costs are.

4. Consider additional checks
Use comparison websites: Use comparison sites like Unbiased or MoneyHelper to find and compare advisors in your area.
Check client reviews: Look for client testimonials and reviews to get an idea of customer satisfaction.
Contact the FCA: If you have any issues with an advisor, you can contact the FCA directly or file a complaint with the Financial Services Ombudsman, notes Citizens Advice.