There are two types of advisers, the first an Independent Financial Adviser (IFA) is an individual who works alone or as part of a wider network of IFAs. They are there to offer independent advice on the marketplace and to help you make informed financial decisions. They are not tied to any one company and have access to the whole market. They can recommend products and help you buy them. They are also regulated by the FSA and so have to meet a high standard of practice and fairness.

The second type of adviser is known as a financial adviser, they offer the same service as an IFA, but they will be tied to a company or number of companies and therefore can only recommend products from the company or companies they are tied to. They can’t recommend from all the products in the marketplace.

You will have to pay for their services, but many advisers offer a choice about how you do this. You can pay your adviser a fee or you can arrange for the company providing the product to pay them commission. Your adviser will explain these choices to you, and help you decide what’s best for you.

Pros

• A financial adviser can only sell you something that is suitable for you and they have to give you clear written advice explaining why it is.
• Independent Financial Advisers (IFAs) can recommend any type of product, they are not limited to specific products or companies. Tied financial advisers will only be able to recommend products for the companies they are tied to, but this can still be an extensive list.
• All financial advisers have to pass a series of exams, so you’ll know that you’re getting advice from a professional.
• You’ll know upfront what the charges are for their service and whether you need to pay them a fee or whether they receive a commission from the company whose product you choose.
• Advice is personally tailored to you.
• They are accountable to the Financial Services Authority and have an enforceable code of conduct.

Cons

• You need to find one you feel comfortable with and trust – don’t be afraid to shop around until you do.
• You’ll have to pay for the service, either direct or through commission from the company you buy with.

We’re all different, we’re all individuals, each with our own likes, dislikes and financial needs. When it comes to our finances, there’s an overwhelming choice of products and different companies to choose from.  And what may be suitable for one person may be completely inappropriate for another. So if you’re not sure or need a little help, then a financial adviser could be for you.

A professional financial adviser can make recommendations tailored to your individual circumstances and requirements. They can help you make the most of your money and opportunities.

It also gives you rights should something go wrong as they can only sell you products that suit your needs, and you have the backing of the FSA if they don’t.

And remember, if you use an independent financial adviser, you will have access to the whole range of products and options across the marketplace, and they do all the hard work for you.

First you need to find a financial adviser you feel comfortable with and trust, there are lots of ways to do this and you can find out more on our Find an adviser page

Some advisers do specialise in certain areas, so if you have a particular type of product in mind, you may want to narrow your search that way.

Location may be important to you, so you may want to look for an adviser close to your home, or try one a friend has recommended.

Once you have found an adviser you’re happy with, you’ll need to give them information about what your goals are, your attitude to risk, your current financial situation (including debts and commitments), and they will come up with recommendations based on that. When you’ve found the product for you, your adviser can set it all up for you.

Find an adviser

Don’t be afraid to ask - At a first meeting, a good financial adviser will not only give you the information they are required to by law, but will also be happy to tell you about their qualifications, experience, organisation, fees, how they get paid, and any conflicts of interest they may have.

Be prepared – Any adviser will need to know about your financial situation. Make sure you take as much information on your finances and paperwork as you can to make sure you can answer all of their questions.