Answer: Because most people don’t come to Mansion Park Ltd!
Financial advice is a minefield. There are different types and different specialities. Mainly, there are two types of financial adviser; restricted, and independent.
Broadly speaking, restricted advisers are tied to certain providers, whether this be the one provider, or if they work off a panel of a certain number of providers. Restricted advisers, impose restrictions on themselves for strategic or tactical reasons, and are therefore only able to place their clients with these providers.
Independent advisers aren’t restricted, they’re whole of market. Independence is vital as the adviser will be doing the right thing by the client, instead of doing the best thing by the client within a range of limited providers.
All firms are subject to the clients best interests rule, whether they be restricted or independent. This may mean that if a restricted adviser cannot find a suitable recommendation they may refer the client to an independent financial adviser.
Financial advisers must be qualified to Diploma 4 level to be able to advise on all areas, and it shouldn’t matter whether they are restricted or independent as to their level of qualifications.
When will you need to use a financial adviser?
Retirement Planning – pension providers will offer you an annuity, however this isn’t your only option. It is imperative that you use a financial adviser to understand your options when it comes to retirement
Investment Planning – as we all know, interest rates on the high street are low. There is an indication in the general public that investments are high risk – this isn’t always the case. There is always a risk to investing, whether this be high street investing i.e. with your bank, or using a financial adviser. A good financial adviser should always take your attitude to risk into account.
( Remember – The value of investments can fall as well as rise. You may not get back what you invest. )
Mortgage Advice – many people think the high street is the only means of lending, ‘if the high street says no, this means no’. This isn’t always the case, seeking advice can open doors you didn’t think could be opened.
Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The precise amount will depend on your circumstances, ask for a personalised illustration.
Life Insurance – a very complex area. Hundreds of products, with add-on’s and flexibilities, but making sure the product is correct for your circumstances is invalid. We don’t charge a fee for advising on protection policies – we receive a commission payment from the provider.
If you are interested in talking to someone about finding a good financial adviser near you please contact us to arrange a chat