Check that they’re FCA regulated
The most important starting point is to check that the adviser is regulated – and it’s vital to do this at the outset before you hand over any personal information or money. In the UK, anyone providing regulated financial advice must be authorised by the Financial Conduct Authority (FCA). If they’re not FCA regulated, you won’t be covered by any of the schemes in place to protect consumers. Pay particular attention to “advisers” on social media, some of whom may hold themselves out as experts but aren’t regulated at all. Don’t just take the adviser’s word for it - the best way to be sure is to look at the FCA’s financial services register.
Are they qualified?
You should also look for recognised professional qualifications and evidence of ongoing development. If they’re a wealth planner (also known as a financial planner), look for evidence that they have a Chartered Financial Planner qualification from an organisation such as the Personal Finance Society. If you’re seeking a wealth manager, look for advanced qualifications from the Chartered Institute for Securities & Investment, or the CFA Institute.
Understand the adviser’s investment approach
Looking at past investment performance is of course a factor to consider, but it’s important to always look at returns in context and particularly against the goal of your investments. If it’s a lower-risk investment, the goal might be to outperform inflation or to provide a regular dependable income. If it’s a higher risk investment, looking at the returns against the aggregate performance of other firms could be more beneficial. Bear in mind also that no portfolio is immune to global events that cause market volatility – a good adviser will be able to clearly explain performance to you.
Evaluate their communication style
Even the most technically capable adviser will struggle to add value if they are hard to reach, slow to respond or unable to explain recommendations clearly. The right adviser should understand what you want to achieve, explain difficult choices clearly and help you stay focused when markets, tax rules or family circumstances change.
As you speak to potential advisers, consider whether they listen carefully, respond promptly and keep meetings focused on your objectives. It’s also worth checking how they manage continuity of service when they’re away on leave – do they have a wider team that you can speak to in their absence?
Assess the breadth of service
Good wealth management is rarely just about a portfolio. The real value often comes from joining up the different parts of your financial life: investments, tax, retirement, family needs and future plans.
A quality wealth adviser should help you make informed decisions across retirement planning, tax-efficient investing, inheritance tax mitigation, succession planning and family wealth.
Consider reputation and stability
An advice relationship may last for many years, and sometimes across generations. Ask how long the firm has been established, whether it has a stable ownership structure, how client assets are protected and what independent reviews say.
To find out more about how JM Finn could help you manage your wealth, get in touch with us at info@jmfinn.com
