Products
Services
Independent Advice
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 Financial Services Authority
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 Compensation 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.
The firm will usually have their own 'Client Agreement' in addition to the
'Key Facts' documents). This will include more information about the firm.
Please note a Client Agreement is not required to be provided for advice on
Mortgages and Insurance.
You can ask to see these documents at any time. Use the 'contact us' page to
request these.
What protection do I have?
Your adviser will always endeavour to do the very best for you. Whenever you
deal with a financial adviser you will receive details on the complaints
procedures offered by the firm. If you wish you can request a copy of these
procedures at any time.
When the adviser is advising you on regulated products (including investments,
insurance and mortgages) you have the protection of the Financial Ombudsman
Service (FOS) and the Financial Services Compensation Scheme (FSCS).
If you are unhappy about the advice or service you have received you should
firstly contact the firm that provided the advice or service. This gives them
the chance to put things right and/or to provide their own version of events.
Should you remain dissatisfied you can refer your complaint to FOS who will
investigate the complaint independently and make a ruling. FOS work with
customers and financial advisers to resolve a complaint, and when they do have
to make a ruling it is binding upon the firm.
If you try to submit a complaint to a firm and the firm is dissolved, or unable
to meet its obligations, you may have recourse to the FSCS (Financial Services
Compensation Scheme). This is a service funded by all the companies within the
industry to protect customers where firms have closed or gone into liquidation.
Anything else I should know?
Some financial advisers do give advice on products that are not regulated by FSA
– such as general taxation and some Buy-to-Let mortgages. Your adviser will
explain to you when you are receiving advice on an unregulated product. It is
important you are happy with the advice as you do not have the added protection
of FOS or FSCS when dealing with some unregulated products.
The Financial Services Authority does not
regulate Taxation Advice and some Buy to Let Mortgages