All regulated financial advisers are authorised to give advice by the Financial Services Authority (FSA) which includes advice and recommendations on;
Mortgages;
General insurance; and
Protection insurance
Receipt of financial advice can take many forms including telephone, e-mail and correspondence, but more often than not is in the form of a face to face interview with an adviser. Whichever of the above mediums you choose to receive your advice one common factor should be apparent and that is the gathering of sufficient detailed information to enable an accurate and relevant recommendation to be made.
In all circumstances it is the adviser's duty to only recommend a product or service that is relevant to your needs.
It is of course possible to purchase products or services without having to receive advice However, as a consequence it is up to you the customer, to decide whether the product or service you are purchasing meets your needs. It is also worth bearing in mind that your rights of complaint should you purchase financial products or services yourself are diminished should the product not turn out to be what you expected.
Different firms will give different advice on product types but broadly firms will offer products from either the whole of the market, single product provider or a grouping of product providers.
This all sounds rather complicated?
As mentioned earlier all regulated firms and advisers have to follow strict guidelines laid down by the FSA regarding the provision of advice. This is ultimately to protect you the consumer and to ensure you are given accurate, fair and relevant advice.
At the beginning of any interview you will be provided with information by the adviser to quantify his status and what products and services he or she can offer you. You will also be provided with a 'Keyfacts' document which will further detail the services provided. These items should provide you with enough information to be confident around the services provided, if you are unsure do ask.
It is always a good idea to have a think about your own financial situation prior to meeting with your adviser. Questions you can ask yourself before for example;
What are your aspirations for the future?
Do you have any borrowing under control?
Do you have any family protection in place?
Do you have funds available should an emergency arise?
How do you feel about retirement?
Following your information gathering interview with your adviser he or she will take account of your responses to the above questions and many more details obtained, to arrive at a suitable suite of recommendations to meet your identified needs.
It is then adviser's responsibility to recommend solutions in the form of policies to cater for these needs - remember though, in an ideal world we would all like to be fully protected and save lots of our hard earned cash for a rainy day or retirement but this is not always possible.
Therefore, prioritise if you have to and ask your adviser based upon your budget what are the most pressing needs which need to be addressed now. You relationship with your adviser should not be a one off but a continual progressive relationship whereby you can agree to cater for and meet your needs, on an ongoing basis.
Jonathan Grigson has been involved in the Insurance industry for over 15 years and is a respected industry commentator. He is a regular contributor of Insurance related articles and is a regular publisher at UK Insurance Information
