Go back

Why choosing a trustworthy financial adviser pays

Go back


Financial planning is a complex subject, especially with the recent pension mis-selling scandals. Yet it seems that people are shunning advice from a financial adviser, preferring to go it alone.

It’s reported that just one in three people plan to talk to an independent financial adviser (IFA) about their retirement options. This is mainly due to the cost.

But it’s not just the cost that you need to be wary of. Many of us will face big financial decisions over the course of our lives. Read on to find out the pros and cons of working with a financial adviser, as well as what to look out for when choosing a reputable provider.

What are the benefits of professional financial advice?

Despite the perceived outlay, a good financial planner can be worth their weight in gold. They can provide their clients with a clear picture of their financial future, improve in their tax efficiency, offer higher potential retirement incomes and reduced risk of unsuitable investments.

They have in-depth industry knowledge so are better placed to advise you on how specific products can benefit you. Sometimes they have access to exclusive products that aren’t readily available to the general public.

In addition, they should be able to provide you with a range of solutions tailored to your individual circumstances.

How do I know if a financial adviser could be untrustworthy?

If a financial adviser provides you with generic information that isn’t tailored to your circumstances, warning bells should start to ring. Given that everyone’s situation is different there’s never a one size fits all solution.

They should be properly qualified to give financial advice. This includes obtaining certain industry qualifications, as well as being authorised and regulated by the Financial Conduct Authority. This means that if you have a complaint you can take it to the Financial Ombudsman Service (FOS).

Steer clear of any financial adviser who cold calls you, especially those offering a too good to be true free financial review. They are often looking to get you to transfer your funds into high-risk investments. This is a key part of the pension mis-selling scandal.

Trust your gut instinct. If something feels wrong, it probably is. You’re trusting this person with what could potentially be your lifetime savings. Take time to make a considered decision to help protect your hard-earned money.

If something does go wrong, don’t worry.

If you think you’ve been targeted by an unscrupulous IFA, get in touch with our experienced legal team today for advice on whether you’re eligible for cash compensation.