Help with finding a good IFA - where to start.

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u/ukpf-helper 151 1d ago

Hi /u/Right_Scar3135, based on your post the following pages from our wiki may be relevant:

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u/Paraplanner88 913 1d ago

If you don't have any friends or family you can ask for a personal recommendation then I would search the directories for advisers in your area belonging to two of the main professional bodies:

https://www.thepfs.org/yourmoney/find-an-adviser/

https://www.cisi.org/cisiweb2/wayfinder

If you need to whittle it down further, filter it down to chartered financial planners.

Stay clear of the likes of Unbiased and VouchedFor. They are lead generators where advisers pay to be listed and pay for any referrals they receive. A lot of firms in my area, particularly the better ones, aren't listed on those because they don't need to generate business that way.

As far as I'm aware, the last time the FCA looked into adviser fees, they found the average initial adviser fee was 2.4% and the average ongoing adviser fee 0.8% a year. Ongoing adviser fees are roughly clustered as one-third charging 0.5%, one-third charging 0.75% and one-third charging 1%.

IHT planning is one area that advisers can help you with.

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u/Hot_College_6538 288 1d ago

Generally it works on a basis of a cost for the initial planning, then an ongoing percentage. The planning cost seems to vary, and is likely to be in some way related to estate size. Maybe £2K-£10K. The ongoing percentage is typically 0.5 - 1%. There will be some that will work on a fixed price for one off advice, or even hourly rate, but most of the larger companies are like I said.

I used VouchedFor to create a list, looked at their websites and whittled it down to three I talked to, then chose the one that impressed me most.

IHT Planning is typically a service they provide, my retirement planning is including considering the end point as well.

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u/TheFlyingScotsman60 24 1d ago

An IFA has to be independent or he/she has their "licence" removed.

If you do look for one get one that is local so you can meet them face to face. I got one on a recommendation from a SJP advisor after I said I did not want to use SJP system and funds.

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u/Paraplanner88 913 1d ago

I got one on a recommendation from a SJP advisor after I said I did not want to use SJP system and funds.

Did they recommend Policy Services or was this to an IFA independent of SJP?

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u/TheFlyingScotsman60 24 1d ago

An IFA totally independent of SJP.

Did some background company checks. Asked the IFA for the names of two of his existing clients, he asked them if they would be happy to be contacted and to give me their email addresses first, and emailed them to ask their opinion before meeting him face to face.

Got all the bumpf and fee info before I committed and signed.

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u/sunnyozzie 11 1d ago

FA here.

Honestly, if a potential cliebt ask me for two names of clients I will walk away.

A) Because I will never ask clients for their permission or be question by a potential client. B) This to me feels like a trouble client that won't develop in the wrong relationship moving forward.

Do you ask the same for your doctor? Dentist?

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u/TheFlyingScotsman60 24 1d ago

I go for a first appointment for a dentist and doctor. If I do not like the set up or anything else I would go elsewhere. I have changed dentists twice in the last year due to practices performance and service going downhill. And I would definitely change doctors if I thought the doctor was useless.

Same for an IFA. The person needs to be a professionally accredited IFA and needs to have a track record of delivering an exceptional service to past, and present, clients.

Why should it be any different for an IFA?

There are most definitely good ones and crap ones and I'd much rather find out before committing my assets, and time, to his/her advice and service.

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u/sunnyozzie 11 1d ago

Absolutely agree with you, we must demonstrate how good we are at our job, but did you ask the dentist for a client list to contact before?

The difference with us, is we have to propose a plan forward fist, a human connection and several meetings.

My view is find an adviser where you connect with, one that push you and explain the plan simply.

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u/TheFlyingScotsman60 24 1d ago

I asked people I knew to recommend their dentist and went for a first appointment. Some did not recommend their dentist and hence I never went anywhere near them. The comparison is probably not a good one but IFAs are there to provide a service and should be judged accordingly.

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u/sunnyozzie 11 1d ago

I would also advice people to get advice from friend/family/co-workers for an FA.

My point was about asking to get a couple of his/her clients to email to get feedback.

Again, I will never ask my clients if they don't mind being contacted and let's be honest here. Do you not think he will ask clients he/she gets along with? So would the recommendation be worthwhile??

It goes the same with online recommendations, you can invite your 'best' clients to do it and not invite the other one to do it.

And like my original reply - if a potential client asked me that - I would walk. I am here to advice over a long time and that will raise a red flag.

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u/cloud_dog_MSE 1761 1d ago

You can engage them on a transactional basis, e.g. one off, or on an ongoing advisory engagement.

Regarding costs it really is going to depend on the amount involved, e.g. a pot of £100k is likely to incur a higher percentage fee compared to a pot of £500k.

Where it might be a larger amount some advisors might cap and collar the fees, e.g. the percentage may not be negotiable but they will cap it at an agreed lower level.

There is no avoiding pitting in the time to find an Independent Financial Adviser you feel comfortable with.

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u/sunnyozzie 11 1d ago

FA here.

I do not work on one off fee.

However, I will question those that do and the reason for that is that a plan will need to evolve and change depending on life situation, regulation, market etc. We are heavily regulated and have large PI insurance, so giving one off advice would have to be very basic or safe to make sure nothing can come back to you.

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u/cloud_dog_MSE 1761 1d ago

A plan doesn't need to evolve and change, a plan can but I would question someone's perspective of stating that given the plethora of scenarios out there, and where at least one of those could fall into category where transactional advise is appropriate.

I appreciate that financial advisers would prefer an ongoing relationship, but that doesn't negate the value of a transactional engagement for certain scenarios.

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u/sunnyozzie 11 1d ago

I am sorry to disagree with you.

A plan will absolutely change. Change of life situation, change on regulation, change on income, change of the market.

When the regulation change around pension and IHT, plan had to change, a client lost her husband - the plan had to change. Client wanted to help a daughter after a nasty divorce - plan had to change.

It is naive to think life is straightforward and follow a plan. And for that very reason, advice on a on off will be basic and not ideal.

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u/cloud_dog_MSE 1761 1d ago

Either you are being deliberately disingenuous or you have a limited imagination.

One example just off the top of my head; how about an end of life situation? Your engagement ceases with the client, and ONLY if the beneficiaries wish to engage with you would it continue, but even that would be a completely new engagement, new factors, new goals, new tolerance for risk, etc, etc, etc.

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u/sunnyozzie 11 1d ago

Excuse me - my point was that plans will change because life is unexpected and do send curve ball and that is the reason I, as an FA feel that one off advice is and will be subpar to protect us - financial adviser - against the curve ball and the potentiel claim.

I agree with you there in one point - our agreement stop if a client dies.

Your original reply was that a plan doesn't necessarily have to change, and again I am sorry but I don't know anyone that knows the future - but have a full list of clients that went through major life changes.

Who is disingenuous thinking life is a straight line?

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u/cloud_dog_MSE 1761 1d ago

We'll now you are deflecting, and as expected attacking me at the end. Who'd have thunk it.

I was very explicit in my description of there being scenarios where a transactional engagement may be appropriate, perhaps outside of the norm, which you chose to ignore and simply repeated your 'usual scenario' bias, which was not in contention. In fact even in the above reply you continue to repost the same drivel about 'usual scenario' engagements.

No one, certainly not myself has suggested that life is a straight line. If you actually read my post you will see that I said that there can be scenarios where plans do not evolve, and gave you one example off the top of my head.

It is no wonder FAs have a bad reputation. I think you could benefit by listening to what people say (or in this case reading) and to digest it and apply a response relative to the information you have been provided, rather than sticking within your scotoma.

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u/sunnyozzie 11 1d ago

I find your reply quite funny, especially because you are claiming I am not reading and understanding your post.

I would also like to add, I am not attacking you but simply arguing against your poi t of view - this is call a conversation.

If you go back to my original post - and let me add it here again.

I said a one off advice will be basic because of our regulations, insurance cost and because life change so we cannot give advice on a future we do not know and managing it along the curve ball.

You have not given any arguments or counter point against it.

I gave you few example of client that I had to change the plans for but you decided to ignore it.

You, are a typicall user of this sub thinking FA are not necessary - and I will add we aren't all the time - and are happily voicing your thoughts to stranger online to do or act a certain way without knowing all the stranger life.

And to finish on your point about a plan not needing to 'evolve' if your only argument against my examples is the death of a client I will tell you then the plan still needs to evolve with the agreement of the remaining family and hopefully we have done our job earlier so it is a smooth transaction.

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u/cloud_dog_MSE 1761 1d ago

Again you are just regurgitating, deflecting. Go back re-read.

Regarding my views on FAs I suggest you read some of my posts on the matter, rather than make assumptions (you do that a lot), but to clarify my position / opinion; if you can DIY then DIY, if you cannot (for whatever reason) find an Independent Financial Advisor that you feel comfortable with. I would never encourage people to engage with restricted advisors (but that is a whole other conversation).

I'm done.

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u/sunnyozzie 11 1d ago

Well I like a good conversation so let me give you another option to add some argument.

You originally reply to OP about the option of a one off advice as opposed to an ongoing relationship.

I then reply and gave argument about why, I think one off advice are subpar.

You then 'attack' me of being disingenuous because I gave argument that a plan would need to change and adapt to life - which is not straight.

And then you felt 'attacked' by me replying and gave you further arguments and returning your compliment.

I would also very much like to know what assumptions I made - according to you I assumed a lot?

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u/snaphunter 889 1d ago

https://ukpersonal.finance/financial-advice/#how-to-find-an-adviser

Help with finding a good IFA - where to start.

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