Ten things you need to know about...

Ten things you need to know about...

Last week the British Standards Institution launched a new standard for financial planning, which will 'specify the ethical behaviour, competences and experience required of a financial planner'. The aim of the new standard (BS ISO 22222) is to raise service levels for consumers, but it may just add to the confusion about how to go about choosing an IFA. Here are 10 things which should offer some clarity.

· There are now three categories of adviser: those who will look at products from the whole marketplace; multi-tied advisers, who can sell products from a limited selection of providers; and tied advisers, who only sell the products of one company.

· The minimum qualification a financial adviser must hold is a Certificate in Financial Planning. But IFA Promotion, which represents 90 per cent of independent financial advisers, says a third of consumers now demand extra qualifications from their adviser if they are looking for advice on a specific subject, such as ethical investment or inheritance tax planning.

· Ask the adviser what other qualifications he or she possesses. IFA Promotion has a useful guide to the majority of these on www.unbiased.co.uk

· You can also find an adviser in your area and get a voucher for a free initial consultation by visiting www.unbiased.co.uk

· You can pay.....continued below

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for advice by fees, commission or a combination of both. Paying a fee can work out cheaper in the long run but these average £75-£250 an hour.

· For an adviser to call themselves independent they must offer fees as an option.

· If you're putting a lot of business an adviser's way, ask them if they will negotiate on cost. This can be in the form of a reduction in the fees, rebate of commission, or extra units added onto an investment

· Some advisers have 'chartered financial planner' status, making them equivalent in professional standards to accountants and surveyors. To find a chartered adviser, see www.thepfs.org, click on 'find an adviser' and select 'chartered status'.

· Vulnerable people needing help with planning for long-term care fees were given extra peace of mind last week. Symponia, the IFA-based advice service specialising in this area, is now insisting its members undergo a full criminal records check.

· If you have a complaint about an adviser, take it first to the firm you dealt with. If you are not satisfied, contact the Financial Ombudsman Service.

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