Independent Financial Advisers are required by their regulators to give the best financial advice. But don’t just take our word for it, see just what Which?, the consumer interest group say.
Which? has slammed bank and building society advisers after 32 out of 37 gave poor investment advice to its mystery shoppers.
The consumer group has urged investors to see an Independent Financial Adviser (IFA) for financial advice. Unlike many banks and building societies, Independent Financial Advisers (IFAs) have access to the whole of the market and must offer unbiased advice.
Researchers carried out the mystery shopping exercise between August and October this year, and found that just five of the 37 tied high-street advisers gave good advice, compared to four out of six IFAs who offered good advice.
Which? assessed the quality of advice according to whether advisers disclosed their status as tied advisers, explained the Financial Services Compensation Scheme, carried out a thorough fact-find, clearly established the customer’s attitude to investment risk, discussed tax issues and fully explained the product being recommended and its fees and charges.
Because some banks and building societies are tied to one provider, their advisors can only offer a product from their provider, whether or not it is the right product for you. They will also inform clients that the advice is free, despite commission being paid to them, sometimes as much as 8.8%.
Derek Pearce, Non Legal Partner and Head of Financial Services, Poole Townsend, comments: “This investigation by Which? clearly highlights that the High Street is not the best place to go for investment advice.
“Seek financial advice from an Independent Financial adviser, who is not tied into a single provider, who can offer you the best financial advice and will clearly outline the risks and costs involved in all products”.
Derek adds: “Poole Townsend has been providing Independent Financial Advice for almost 20 years. This is often given in conjunction with specialist legal advice, which is a rare offering”.
So quite simply, for the best financial advice, make sure your adviser is independent and not tied to a bank or building society.
Telephone, Poole Townsend on (01229) 811811, Barrow/Dalton/Ulverston - (01539) 734455 Kendal - (015395) 62044 Milnthorpe - (015395) 33316 Grange-over-Sands
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