Financial advice
Regulated financial advice
A financial adviser can help you achieve your financial goals. When you work with a regulated financial adviser you will discuss your personal financial circumstances. You can also discuss your family’s financial circumstances if estate planning (leaving money to children or other family members) is important to you.
If you are worried about managing your compensation payment, a financial adviser can talk you through your options and put a plan in place to help you plan and manage your payment.
You can choose to work with a financial adviser just once or on an ongoing basis.
What a financial adviser can help you with
Financial advice is personalised to your circumstances and can help you in the following areas.
Managing your money
- Budgeting and choosing the best ways to save your money.
- Planning for or navigating big life changes such as getting married or divorced, buying a property, unexpected changes to your employment or deciding when to stop working.
Debt
- Help if you have any debts.
- Alternatively, there are charities that can offer free, confidential support with managing your debts:
Investing
- Advice on where to invest your money and why. If you want to buy property, a financial adviser can introduce you to mortgage brokers.
Retirement planning
- Planning your transition into retirement and making sure you will have enough money to live on.
- If you have pension pots from previous employers, a financial adviser can help locate and combine them for you.
Estate planning
- Planning how your money and any property will be passed on after you die.
Protection
- Putting different insurances in place to protect your money, property, family or business.
Tax
- Although your compensation payment is tax free, tax may be due if you choose to save or invest your money. A financial adviser will help you with tax planning.
The difference between financial guidance and financial advice
Anyone can give generic financial guidance. This is not the same as regulated financial advice.
Only people or companies that are authorised and regulated by the Financial Conduct Authority (FCA) can legally give you personal advice. Personal advice is specific, for example telling you where you should invest your money.
If a regulated financial adviser gives you bad advice, there are legal procedures in place to protect you.
Be aware of companies or online personas that look like legitimate financial advice companies or advisers, but are not qualified or regulated by the FCA.
If an unregulated person gives you bad advice, there are no legal procedures in place to protect you.
How to find a regulated financial adviser
A regulated financial adviser must hold a minimum Level 4 qualification from any of these institutions:
- Chartered Insurance Institute (CII)
- Chartered Institute of Securities and Investments (CISI)
- London Institute of Banking & Finance (LIBF)
They must also be currently authorised by the FCA to give you financial advice. You can verify this by searching the FCA register online.
It is your right to ask a financial adviser for proof of their qualifications and FCA authorisation.
Most financial advisers offer an initial chat free of charge. You can have an initial chat with as many financial advisers as you need. Only sign a contract if you feel comfortable to do so. You are not obliged to sign a contract with a financial adviser even if they have done some initial work for you.
If you would like to work with a financial adviser you can search for one online on the Unbiased website.
How much it costs to work with a financial adviser
There are three main ways you will be charged.
Proportion of the money you want to invest
Most financial advisers will charge you by taking a percentage of the money you invest.
Flat fees
Some financial advisers will charge you a one-off fee.
Hourly fees
Some financial advisers will charge you per hour, though this is not common. Be aware that hourly costs can quickly add up.
What to do if you are not happy with your financial adviser
You have the right to stop working with your financial adviser or switch to a different adviser at any time if you are not satisfied with the service you are receiving.
You must check your contract with your existing adviser as there may be termination fees you have to pay if you cancel their services.
If you think you have been given bad financial advice you can complain to your financial adviser and the company they work for. If you are unhappy with the final response, you can escalate your complaint to the Financial Ombudsman Service (FOS) free of charge online.
The FOS will investigate your complaint and can award compensation if appropriate.