Good intentions?

Thursday, 26th May 2011 18:38 - by Resident IFA

I’m working to the assumption that the readers of this Blog will be ‘clued-up’, and so enjoy an ongoing relationship with an Independent Financial Adviser (IFA). Looking ahead – over 18 months, in fact – it might be an opportune time to ask your IFA a couple of questions:  Do you intend to remain as an IFA? (Meaning that they will offer a fee-based service)  How near are you to achieving the new, higher standard of professional qualification? (Known as QCA4 Level) These changes will take effect from 1st January 2013. The Financial Services Authority (FSA) holds the following broad objectives behind the above (main) two changes:  Encourage dialogue between IFA and Client as to how, and how much, the Adviser receives. Some Clients will be used to, or at least more comfortable with, paying a fee for work undertaken. Regardless, the ‘cost of advice’ should be transparent – in tandem with equally straightforward financial product design.  Encourage IFA’s to strive for professionalism; to be ranked alongside Solicitors and Accountants. A better qualified and committed (to learning & improvement) Adviser will likely lead to better ‘outcomes’; the FSA now working to ‘Outcomes-based’ regulation’ (OBR) for the Client. Studying can be tiresome and challenging to fit around work and family, so really does show willing! A brief Blog today; but one that I hope stimulates you to re-assess the quality of financial advice you receive – and how you pay for it. Of course, you might well have an IFA already with QCA4 Level qualifications...or even a Chartered Financial Planner. Until next time...