Buying the cheapest financial services products ‘off the shelf’ is very often the least value for money. This may sound contradictory, however, cheapest is not always the best. By best, we mean best for you, the customer.

To be value for money the product has to meet exactly your requirements. Cost, whilst important, is only one part.

Millions of people in the UK fail to seek professional financial advice. Some of the reasons given are:

• Afraid of being sold products that are unaffordable or not required,
by ‘commission-hungry’ salesmen

• Financial Advice is ‘not for the likes of me’

• Finances are too personal to discuss

All of these are understandable and, if you are to seek professional financial advice, you need to have trust in the adviser.

 

Treating customers fairly is not only a principle of the Financial Services Authority; it is an established ethos of Burns-Anderson PLC. This means that every action taken by authorised representatives of our network is with your needs first and foremost in their thinking. Our promise to you is that:

• You will be given advice and recommendations that best meet your needs, circumstances and affordability

• Every piece of information you provide will be treated in the strictest of confidence

• Advice and recommendations will be made only when you have given the adviser permission to act on your behalf and all relevant information

• We will make our advice charges clear, and ensure that no advice fees are taken without your prior consent.

 

When you deal with any adviser who is an appointed representative of Burns-Anderson, you will receive a terms of business letter. Amongst other things this will state:

We promise that we will do all of the following, no matter what service we are providing, whether you are an individual, institution or corporation.

• We will treat you as a retail customer for any investment business we arrange (this gives you the highest level of protection you can get).

• We will check with you what level of service you need and how you can pay us before we start any work.

• We will offer you the best advice we can to suit your needs, circumstances and budget.

• We will treat all the information you give us as private and confidential.

• We will avoid any conflict of interests in our dealings with you.

• We will confirm our advice and recommendations in writing.

• We will give you clear information and keep you up to date while we are providing our service to you.

• We will not try to stop you if you make a complaint.

This reassures you that we are treating you fairly in everything that we do for you.

If you have never used a Financial Adviser before, or have but some time ago, you might not be familiar with what is available to you.

Before we go into your choices, a warning: Not all firms who call themselves financial advisers are properly authorised to do so. Make sure that you select firms who are directly authorised by the FSA or who are part of a network, like Burns-Anderson, which is authorised by the FSA. If in doubt, check the FSA register via its website: www.fsa.gov.uk. If they are not authorised and things go wrong you will not have access to complaints procedures and compensation schemes.

The three main product areas that require authorisation to provide advice and recommendations are:

• Investments (including pensions and certain insurances)
• Mortgages
• Insurance

Some of the areas clients discuss with our members are:

• Protecting their income if they’re too ill to work
• Protecting their living standards against redundancy
• Protecting their family if they died
• Buying their Home
• Remortgaging their home
• Insuring their assets
• Building savings for their children
• Meeting the cost of education
• Boosting income
• Investing a lump sum
• Retirement Planning
• Retaining Family Wealth
• Getting value from the their business

Before deciding on what kind of adviser you need, consider what kind of advice you need. If it is debt counselling why not try your local CAB. For a list of offices try the website www.citizensadvice.org.uk

Are your financial affairs quite complicated and/or involve relatively large investments, income or estate values?

Do you require all round financial advice, with few specific concerns but need advice on how to put all your plans in order?

Are your needs straightforward and likely to be met through retirement planning, savings, insurance, investments and/or mortgages?

When talking to your adviser for the first time, ask what levels of service are being offered and at what charge. You should deal with an adviser who is able to help you look at the bigger picture. That is to say, not only looking at your existing arrangement but also taking into account your future needs too. The adviser will help you focus on your priorities and affordability and deal in an efficient, cost-effective way on your behalf.

When it comes to investment advice and recommendations, advisers will either

• Research the whole of the market place on your behalf
• Have a select range, or panel of providers available or represent only one product provider

Burns-Anderson’s members offer whole of market and select range. Whilst product availability does not in itself determine the standard or level of advice it does limit the recommendations that can be made. If your adviser uses a panel of providers, make sure that these are well respected, financially sound, have a good track record of investment performance and have value for money products. Burns-Anderson is proud to be associated with AXA, Legal & General, Friends Provident, Standard Life and Scottish Equitable as its panel providers. All of these companies meet our strict criteria for quality products and services and for treating customers fairly.

If the adviser cannot find a product that meets your specific needs, ask what access he/she has to the whole of market. This can either be through the adviser’s firm or by referral to another adviser. By being part of Burns-Anderson, our members have access to all levels of advice and service.

You might be familiar with the terms ‘Independent Financial Advice’ or ‘Independent Mortgage Advice’. To promote themselves as independent, advisers must offer you a fee only option of payment for services and provide advice and recommendations from the whole of the market place.

Upon initial meeting, all advisers must explain to you the level of service offered and how they will be paid, fees or commission. They will give you ‘Key Facts’ documents explaining these in detail. If a fee payment is an option (or the only choice) the adviser will base this as a flat rate fee, an hourly rate or as a percentage of the investments considered, or a combination of these. The alternative is to be paid commission by the product provider. If an adviser charges a fee, many will offset commission against the fee or negotiate reduced charges so more of your money is invested. The adviser will give you a ‘menu’ of commissions, comparing the maximum payable to his/her firm to the average commissions paid throughout the industry. The adviser will explain these to you.

Remember that in most instances the cost of advice is more than offset by the savings you will make by getting the best advice.

The most important person in the advice process is you. The advice given to you is only as good as the information you give the adviser.

Financial planning is the process of:
• Taking control of your finances and
• Making your money work for you.

The advice process is usually in five stages:
• The initial meeting
• The fact-find meeting.
• Research and planning
• Presenting the recommendations
• Service

This is where you and the adviser agree terms of business – this is at no cost to you. You can take information away and shop around if you wish. Your role is to understand fully the services and charges before agreeing that the adviser acts on your behalf.

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This is when the adviser will ask you lots of personal questions about your finances. The questions will include what you have now, what you will have in the future, what your plans are or what you would wish to happen and, as important, what your attitude is to various scenarios. The more information you are prepared to give, the more the adviser will understand you and what you want and need.

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At the end of the fact-find meeting, you will have agreed that the adviser will spend time looking and planning for solutions to meet your needs. If, during this time, your circumstances change, let the adviser know, as this might affect the advice and recommendations.

The adviser will present to you his/her advice and recommendations. This is usually at a face-to-face meeting, but might also be by way of a written report. You should not take or agree to any action unless you are fully happy and confident in the advice. A good adviser will check your understanding and acceptance throughout the meeting.

If you are investing in or purchasing products the adviser will follow up the advice and recommendations with a report of suitability. This can come in many forms, from a simple letter, a restatement of your demands and needs for insurance or a lengthy report. This will depend on the nature of the advice.
You will also receive various documents from the product providers, including illustrations, key features and, for some transactions, the right to cancel. If in doubt about anything, please contact your adviser. You do not have to contact your adviser before cancelling a transaction. However, if you do change your mind, think through the consequences – there must have been a good reason for the recommendation.

The advice and recommendations might include what actions you should take (or not take) during the course of an investment or the term of the policy. Please heed this advice as many customers lose money by taking the wrong course of action. If in any doubt, contact your adviser.

Burns-Anderson PLC is the longest established and one of the largest national groups of Financial Advisers, with over 500 advisers working in 250 firms throughout the UK. We have the reputation in the industry as being the ‘quality’ network.

As members of the Network, your adviser can provide trusted, expert, local and personal service, backed up by the resources of a national company.

Please use our Adviser Search facility at the top right of this page to find a Financial Adviser in your area.