Barry Knight

Description

If you go to your high street bank you may be greeted by a financial adviser, but they could well be ‘tied’ to recommending and promoting the products of the bank, or a single insurance/investment company to which the bank has an allegiance. So why do we need independent advisers, and how can customers be sure they are getting a fair deal? The FSA, to give it its shorter title is the government watchdog that regulates all financial and insurance firms – this ranges from the largest multinational bank, to the financial adviser operating as a sole trader. The FSA handbook of rules and guidance lays down the laws to which all Independent Financial Advisers must adhere, and the way they treat customers is governed by the ‘Conduct of Business’ (COBS) rules. The rules are freely available from the FSA’s website– www.fsa.gov.uk . Please note: this is an external site and our firm is not responsible for the content. How do I know the company I am dealing with is independent? Independent advisers are able to select the correct product for customers from the entire market – that means they can potentially recommend any product from any insurance company providing it suits the customer’s needs and objectives. With such a wide choice of companies, investments and saving tools the customer can be reassured that they are not simply being provided with a standard recommendation – and are getting personalised advice. To ensure you do get personal advice your financial adviser will collect certain details about you and your circumstances to enable him to correctly advise you. Remember to be as open and honest as you can, because the more information you provide, the more accurate the adviser can make his recommendations. From November 1st 2007, all financial advisers have to provide their customers with the relevant important documents: If the adviser is providing advice on investment related business, they must provide a Client Agreement. The Client Agreement has now replaced the 'Terms Of Business' Letter. This document can now also incorporate the information normally included in the 'Key Facts about our services' and 'Key Facts about the cost of our services' The content of the 'Key Facts' documents is listed below. The Client Agreement generally contains information on services provided by the firm, how the firm is paid for the business it conducts, their complaints procedure, Data Protection and coverage under the Financial Services Compansation Scheme (FSCS). (Please note that advisers can offer a 'shortened' client agreement alongside the regular 'Key Facts' documents if they so wish) ‘Key Facts about our services' tells customers about the firm’s activities, whether they offer advice from the whole market, or a range of companies, or even a single firm. It also includes information about the firm being authorised and regulated by the FSA. 'Key Facts about the cost of our services' tells the customer about the service provided by the firm, the payment options and the way in which the firm is remunerated. This document is only provided to clients obtaining Investment advice.

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