Choosing a financial advisor is a big decision so it’s important to find one that can meet your needs from the start. There are literally thousands of financial advisors in the market though so you need to ask potential candidates a few questions before taking their services. So for example you might want to ask the following:

Are you Tied, Multi-Tied, Whole of Market or Independent?
Tied and multi-tied financial advisors can only recommend and sell financial products from specific providers and so you won’t get an idea of the entire range available. Whole of market advisors aren’t tied to certain providers and so can offer every product currently on the market. The downside of this type of financial advisor however is that they work on commission only and you can’t opt to pay them a fee instead. The best option if you’re not sure what you’re looking for is an independent financial advisor, or an IFA, because they can advise on all products and you can pay a fee rather than commission.

What qualifications do you have?
All financial advisors are required to have a basic financial planning certificate but the best advisors will also hold an advanced certificate. Those that hold this additional qualification will have studied for it in their own time and so they are obviously serious about their profession. Don’t be embarrassed to ask financial advisors about their qualifications.

What fees do you charge, or do you work on commission?
In order to ensure that your financial advisor isn’t biased towards one provider you should ask to pay fees instead of commission. The three fees you pay should be for advice, implementation and for your review. It’s important that you don’t just choose the financial advisor with the lowest fees though as their advice may not be as beneficial as you’d like.

Another tip for choosing a good financial advisor is to use one that has been recommended to you by a family member, friend or colleague. There is no better advertising than word of mouth so if someone you know recommends a particular IFA then they are probably worth talking to. If you can’t get a personal recommendation though then you should consult an independent online directory that lists all financial advisors registered with the Financial Services Authority. It’s imperative that whichever advisor you do choose is authorised and regulated by the FSA so you know they have the knowledge that you’ll need in the future.