Trying to find the right financial advisor might seem like a challenging task, but can actually be rather straightforward if you know where to look and which kind of advice you’re looking for. Finding a financial advisor can help you make the right decisions about your financial future.

With Financial Advisor UK, you can be matched with a financial advisor from a national network of fully FCA-registered and approved experts, ensuring you receive the best professional advice for your situation. Whether you’re looking for advice on your buying your first home, taking out a mortgage, investing into your pension or considering a stocks and shares ISA, a financial advisor can offer you valuable guidance on these and a whole range of other financial-related issues, helping you to save time and money in the long run.

How do I find the right financial advisor?

It can sometimes be hard to find a financial advisor via word of mouth, and sometimes you won’t know that a financial advisor has done a good job until they’ve advised you. Check that your union or workplace pension scheme doesn’t have an advisor already associated with them, especially if pensions are what you’re looking for guidance on. The Money Advice Service is also a good point of call, as are comparison websites such as Financial Advisor UK. Read other online reviews when making decisions about whether or not to hire a financial advisor.

If you’re looking for advice on mortgages, investments and financial planning, the Chartered Institute for Securities and Investments (CISI), may also have associated financial advisors who can help. For insurance enquiries, the British Insurance Brokers’ Association (BIBA), is worth consulting.

Financial advisors’ specialisms

Financial advisors are not always referred to as general ‘advisors’, as they often have an area they specialise in, such as mortgages, investments, pensions or tax/inheritance. Another term for an advisor is a ‘broker’. Brokers deal with topics including mortgages, car and home insurance, life insurance and investments such as stocks and shares. Regardless of their specialism, the financial advisor you choose should always be regulated by the Financial Conduct Authority (FCA). The FCA is a body that establishes rules that financial advisors must adhere to. In particular, advisors who advise on pensions, pension transfers, retirement income plans, financial planning and inheritance/trusts and investments must have certain qualifications in order to do so.

There are also advisors who can give you their knowledge on the above topics, but also guide you on other subjects such as life insurance, mortgages and financial planning. These advisors are called ‘restricted’ advisors. This means that such advisors must be limited in the types of products they offer to their clients, and limit the number of providers they work with.

An ‘independent’ financial advisor is just that – independent – and so wouldn’t sell you products from a provider that they were working with. An independent financial advisor will be able to recommend all types of products and look at the whole of the market for you to get the best deals available. It may be worth considering an independent financial advisor, as they can give you more choice and a wider range of products rather than just one or two that may be linked to a company they are working for. That said, you may find that a more suitable advisor will be one who is linked to a few more restricted products. Always discover the types of products the advisor is recommending and ask if there are any providers they are working for. Understand what type of advice they can give you.

Financial advisor fees

The fees for a financial advisor will vary depending on what they are charging you for and how you’d like to pay for their advice. Always be open to negotiate the right terms for your circumstances. Some advisors may charge by the hour for their time, while others might charge a fee for an agreed project or piece of work. Some people hire advisors on an ongoing monthly basis, and set up a regular payment system with their clients.

How much you pay for a financial advisor depends on the following factors:

• Where the advisor is based. If they are located far away from you, travel expenses may be incurred.
• How you receive the advice. Online and remote advice will be cheaper than face-to-face meetings.
• Who does the administration. Some advisors will have support staff to do the background work for them (which is then signed off by them), which will cost less.
• The advisor’s qualifications. If the advisor if very highly experienced and they have good qualifications that make them a leader in their field, their time is likely to come at a higher cost. (Remember that paying a cheap price for an advisor might not necessarily be the right approach).
• What you need advice on. If you need advising on several aspects of your finances, and your situation is complicated, this can take the advisor more time – time which you will have to pay for. Try to sort out as much as you can in your free time before contacting an advisor, as costs can mount up if they have lots of sorting out to do.

Getting started

There are several routes you can take to get started in finding a financial advisor. These include:

Asking around (word of mouth)

Ask family and friends if they know of anyone who has recently dealt with a financial advisor and was impressed with their work. If you know someone who can highly recommend a good financial advisor, this can save you lots of time in trying to find one yourself, although you should speak to two or three advisors before committing, as they may not be right for your situation or be able to offer the advice you need.

Online search

Comparing the market online using search engines and comparison websites such as Financial Advisor UK can take the hard work out of trying to find the right advisor for your circumstances. After answering a few questions about the type of advice you require and your circumstances, you can be instantly matched with a professional that suits your needs. Financial Advisor UK has only FCA-approved and accredited financial advisors. Always make sure that any comparison website you use features properly qualified and regulated advisors.

FCA register

Any regulated and FCA-approved financial advisor will be found on the FCA register. If you decide to use an advisor who is not regulated by the FCA, you will not have protection from the Financial Ombudsman Service and Financial Services Compensation Scheme if something went wrong.