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What do I need to know?About Financial Planning We know that there is a lot of information out there about who is best to get advice from, so we have tried to make it simple and give you some useful tips and information that can help you, should you decide to look for professional help.
Seeking out professional help: What to look forSeeking out a professional Financial Planner to help you to plan your future is one of the most important steps you will ever take. You will have an ongoing relationship with that individual for many years, and it is vital that you feel that you can trust them and that they fully understand you and your situation. Many clients often say that their Financial Planner ultimately becomes one of the most important people in their lives so taking the time to ensure that you select the most suitable person at the outset is crucial. Whatever your reason for getting help from a Financial Planner, you have to make sure you find the one that's right for you. With an interview checklist you can eliminate your worries and find the planner that will meet your needs. Download the brochure: 10 questions to ask when choosing a Financial planner If you have decided to work with a Financial Planner it's important to understand your rights as a client. Our quick, easy-to-use guide identifies your entitlements as a client. Download the brochure: Your rights as a Financial Planning client Payment methodsFinancial Planners will undertake a full review of your financial situation to understand the complexity of your needs and to help you to establish your lifestyle objectives. The outcome of this “fact finding” process will determine the level of involvement required by the planner, and also will indicate the most appropriate solutions to suit you and your situation. If you decide that you need the services of a Financial Planner, one of the important aspects that need to be discussed at outset is the basis on which that planner will be paid. There are essentially two methods of payment for Financial Planning services:
Payment for Financial Planning services will be discussed with you and should be agreed up front. If you have found a Financial Planner using our “Search for a CFP professional” function, the payment option details can be found under the ‘Typical clients and charges’ section of their profile. Alternatively fees can be offset by such “commission" payments. In these instances, any commission due to the adviser or planner for products bought will be used either to reduce or cover the fee quoted. Fees Most Financial Planners tend to work on a fee basis. The production of a personal financial plan is the first step which will normally involve a one-off cost, usually charged as a fee, the extent of which is based upon the complexity of the work to be carried out. After this, to cover the additional work necessary to carry out the requirements of the financial plan, the planner will more than likely be remunerated using fees in one of the following ways:
Whichever option you agree with your planner, it is most important that it is decided and agreed at an early stage in the proceedings so that both you and your planner know exactly how the charges will be made for the very important services that they will be providing. How to check if your adviser is authorisedMost individuals giving financial advice in the UK need to be authorised by the Financial Services Authority (FSA), specifically those giving advice on investments, savings, pensions life insurance and mortgages. Your first task is to check whether the adviser or planner that you are considering using is indeed authorised, and registered with the FSA. This can be done by checking with the FSA on their website www.FSA.gov.uk Independent or tied?You should check on the type of adviser that is available. They will fall into three different categories: What qualifications are there? - An overviewIt is likely that advisers could have a range of qualifications which can often be confusing for consumers, as examinations are provided by a number of examining bodies. The basic level qualification advisers initially need to have attained is:
These are the absolute minimum qualifications required and advisers qualified to this level will use the designation CertPFS or CeFA after their name. Many advisers and planners will have more advanced qualifications, such as:
These indicate that they have passed a series of examinations set by the Chartered Insurance Institute on such topics as taxation, investments, pensions etc. The CERTIFIED FINANCIAL PLANNERCM certification is an advanced qualification, being an internationally recognised certification awarded to individuals who have already proven their technical competency by passing appropriate examinations to the level of DipPFS or equivalent, but who then are tested specifically on their Financial Planning skills to become CFP professionals. In the UK, the Institute of Financial Planning is responsible for the assessing and the certification of CFP professionals. Other organisations such as the Securities and Investments Institute (SII) and Chartered Institute of Bankers in Scotland, offer appropriate qualifications for financial advisers however these tend to be less commonly held. Check if your adviser is a member of a professional bodyMany financial advisers and planners are members of a professional body. This ensures that they adhere to a code of practice and ethics, so asking potential advisers whether they belong to such a body should also be important. What to do if you have a complaint about advice givenYou should initially approach your adviser/adviser’s firm and raise the issue with them directly. In the unlikely event that you do not reach a satisfactory conclusion, if the adviser is a CFPCM professional please email the IFP education@financialplanning.org.uk or write to the IFP Director of Education who will investigate such disciplinary matters. The Financial Ombudsman Service is ultimately available as an independent body created to solve disputes between advisers and their clients, in the unusual instances where they cannot reach a satisfactory conclusion directly themselves. It has the power to instruct where compensation is due, but should only be used as a last resort where all other means of redress have failed. |
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are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB.