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    Four Things To Look For In A Good IFA


    Choosing a financial advisor is no easy task. The decision may be controlled by your goals and the level of control you would like over your financial future. 

    Some investors prefer a hands-on approach that can only be achieved through research and micro-management.

     Others prefer to hand over the reins to a financial advisor.

     Whatever your preference, you’ll need to consider a few factors before taking the plunge.
    A Qualified and Regulated Provider


    Any financial firm operating in the UK must be regulated by the Financial Conduct Authority 

    and are required to adhere to security measures to keep client’s data secure. These measures also apply to IFAs that must provide a high level of confidential support to their clients while also adhering to strict financial guidelines.

     RDR Level 4 qualifications are mandatory for IFAs to give honest, helpful advice. Anything less goes against Financial Conduct Authority rules.


    Cost Transparency

    Before you begin working with an IFA, it’s essential to get a breakdown of their costs so you understand how they will be remunerated.

     It’s common for an IFA to charge around 1.5%. Request that these charges and any built-in product fees are written into your client agreement beforehand so you can calculate their impact on any potential profit you make.

    A Firm Offering a Good Range of Products

    There is a wealth of financial software for IFAs, each with its own nuances. For example, Intelliflo provide software for IFAs is web-based. 

    Good software for IFAs allows them to monitor and manage a range of safe, secure products that suit a customer’s needs.

     Beware of IFAs that recommend unregulated products such as investments in student properties. These are high-risk and should be a red flag for investors.

     A good IFA will ask you to complete a risk profile questionnaire prior to investing so you and your IFA know your attitude toward investing. If not, consider going elsewhere.

    Is the Firm Independent?
    Independent firms can offer more varied financial products than tied firms, operating across the whole range of markets for additional investing options.

     With more choice comes more flexibility, allowing your IFA to tailor their services to suit your individual needs.

     Tied advisors may also have a financial reason for suggesting you buy into a specific product.

     When this happens, it’s possible they’re not working in your best interests.

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