How to choose the right financial adviser in the UK

Knowing how to choose a financial adviser can be a daunting task, but it’s essential to ensure that you’re receiving the best possible service and advice for your financial needs.

In this article, we'll look at the main factors you'll need to consider to help find and pick your perfect UK adviser.

So, how do you choose a financial adviser? Let's dive in...

What should I look for when choosing a financial adviser?

When choosing a financial adviser, there are several things you should consider:

1. Qualifications

Look for an adviser who is qualified and experienced in the areas important to you. Check if they have any relevant certifications or accreditation (more on this below).

2. Fees

Financial advisers charge different fees for their services. Look for an adviser who offers transparent fees and value for money.

3. Expertise

You should seek an adviser with expertise in the areas that are important to you. For example, if you’re looking for retirement planning advice, look for an adviser specialising in retirement planning.

4. Approach

Look for an adviser whose approach aligns with your goals and values. You should feel comfortable discussing your finances with your adviser and confident they have your best interests at heart.

What qualifications should a financial adviser have?

Until 2015, most financial qualifications were assessed under the Qualifications and Credit Framework (QCF), which was replaced by the Regulated Qualifications Framework (RQF).

While there are many routes to becoming a financial adviser, such as studying at university or an apprenticeship, an adviser must have a qualification recognised and approved by the Financial Conduct Authority (FCA).

At a minimum, they must have completed a Level 4 diploma for financial advisers. This is essential, as it signifies that the adviser meets the FCA’s minimum qualification standard for giving professional advice.

All financial advisers available via Unbiased are regulated by the FCA, so you have peace of mind when getting any advice.

Financial adviser fees: how much do they charge?

Financial advisers charge different fees for their services.

Some advisers charge a percentage of the assets they manage, while others charge a flat fee or hourly rate.

It’s important to understand how your adviser charges fees and what services are included in those fees.

What are the different types of financial adviser?

There are several types of financial adviser in the UK:

1. Independent financial advisers (IFAs)

Independent advisers can recommend financial products spanning the whole of the market.

This means that their advice is unrestricted.

2. Restricted advisers

Restricted advisers can only recommend products from certain providers.

In some cases, they will recommend products from a single company.

3. Robo-advisers

Robo-advisers use computer algorithms to build and manage your investment portfolio, and as the name suggests, require little human interaction.

Learn more: Robo-adviser vs human advisers: which should I use?

Independent vs restricted advisers: which should I choose?

When you first meet with a financial adviser, they must tell you in writing whether the advice they offer is independent or restricted.

If the adviser is restricted, they must explain the nature of the restriction. For example, this could be that they can only advise on products from a handful of providers, or only offer advice in certain areas such as pensions.

In many cases, while restricted advisers or firms can cater for a broad range of financial planning needs, if you want to access the widest possible range of products, then you may wish to consider independent advice.

It’s important to note that whether an adviser is independent or restricted is only one part of the process when selecting a suitable adviser. There's lots more for you to weigh up.

How to find a financial adviser

Finding a financial adviser is easier than you might think.

Here are some steps you can follow:

1. Research

Start by researching potential new advisers.

Ask friends and family for recommendations, check out online reviews, and look for advisers who specialise in your specific needs.

Use the Unbiased directory to find a financial adviser near you.

2. Meet with potential advisers

Once you’ve identified potential new advisers, schedule meetings with them to discuss your needs and goals.

This will give you an opportunity to get a sense of their approach and whether they’re a good fit for you.

3. Check their credentials

Check if they have any relevant certifications or accreditations.

4. Make sure you understand their fees

Look for an adviser who offers transparent fees and value for money.

5. Check their expertise

Look for an adviser with expertise in the areas that are important to you.

6. Ask about their approach

Look for an adviser whose approach aligns with your goals and values.

7. Make your decision

Once you’ve found an adviser who meets your needs, make your decision and start working with them.

Get expert financial advice

Choosing the right financial adviser is essential if you want to receive the best possible service and advice for your financial needs.

By following these steps and knowing what to look for when choosing an adviser, you can find a financial adviser who is right for you.

Unbiased can connect you to a qualified financial adviser today.