Financial Advisors

When getting advice on your savings and investments it’s important to know what type you’re getting and to check that your adviser is authorised by the Financial Services Authority (FSA). You also need to understand whether you’re getting advice or just ‘information’.

Difference between information and advice

If you’re looking for savings or investment advice it’s important to bear in mind a few key points:

• anyone advising on or selling investments (e.g. life insurance, pensions, shares, and unit trusts) or mortgages must be authorised to do so by the Financial Services Authority (FSA)
• some firms are authorised to offer an ‘advice’ service, while others can only provide ‘information’ - firms must give you documents explaining which type of service they are offering.
• buying with advice puts you in a stronger position if you later discover that your investment was unsuitable
• the FSA doesn’t regulate the sale of savings products, but a financial adviser may help you choose if they’re already advising you on investments

Getting advice on investments

Investments may grow but this isn’t guaranteed - they could fall in value or you could lose your money altogether. Because of these risks it’s important to consider getting financial advice before buying an investment. An adviser will look at your individual circumstances and needs before making a recommendation, and will explain any investment risks. FSA: Investments made clear

FSA authorisation

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Financial advisers may be authorised to offer advice in one or more areas, such as pensions, life/non-life insurance, general investments and/or mortgages.

Before making a recommendation, financial advisers must:

• ask you in detail about your financial situation and needs
• explain why the product they recommend is suitable
• give you clear information about the costs

Check the FSA Register to see if the financial advisers are regulated by the FSA.

Comparing the service and products on offer

Under FSA rules financial advisers must give you documents carrying the ‘Keyfacts’ sign. These are in a standard format and are designed to make it easier for you to compare products and services on offer:

• the type of service they offer (information or advice)
• whose products they choose from (the whole market, from a limited range or from just one provider)
• how you’re being charged for the service (fees and/or commission).

Firms can only say they offer ‘independent advice’ if they recommend from the whole market and also offer you the option to pay a fee rather than commission.

A financial adviser must also give you a ‘key features’ document before you buy any investment product (sometimes called a ‘key facts illustration’ for mortgages). This will describe the nature, aims and risks of the scheme in a standard format to help you understand and compare it to other products. It will also confirm how your adviser will be paid.

Savings Products

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Because savings products are ‘low risk’ (you usually get back at least what you put in, usually with interest on top), financial advisers don’t need to be specifically ‘authorised’ by the FSA to give advice about them. However, if an adviser is already advising you on investments they may help you choose savings products based on the information available.

Similarly, banks, building societies, and National Savings and Investments (NS&I) will give you ‘information’ to help you choose from their own savings range and they may offer you advice but the final decision will always be yours.

Of course you don’t need to involve anyone in your savings decision if you don’t want to: you can compare what’s available yourself, using our comparison tables.

• Child Trust Fund
• Children's Bank and Building Society Accounts
• National Savings and Investments (NS&I)
• Friendly Societies

How to find a financial adviser

Most financial advisers are listed in telephone directories and business pages.  You may also ask friends for personal recommendations.  Most banks and building societies also have financial advisers. Bear in mind that they’re often tied to selling their company’s products, or a limited range of alternatives.

However, the quickest and easiest way to find a financial adviser is the internet.   The FSA: Getting a financial advice is a great place to start.  In addition, there is a website specifically designed to help you search for a IFA in your area.  Unbiased.co.uk is run by IFA Promotion Ltd, the industry body responsible for promoting independent financial advice in the UK.  

MyEggNest work very closely with Radcliffe and Newlands, one of the UK's leading Independent Financial Advisors and we highly recommend them for all your financial needs. Please speak to Steve where he'll be happy to help you. 

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH

Email: sweisner@myeggnest.com
Tel : 020 7382 0437
Fax : 020 73740462  

Read up on Steve Weisner, our resident Expert.

Question: I have a sum of £6000, that I want to put somewhere to gather good interest. I probably won't be able to add to it, and want to be able to withdraw if necessary, without penalties. Can you suggest anything? Gail.
Click here to find what Steve wrote.

Question: Hi Steve, We have about £50 a month to invest for our first Child who was born in January. We are considering

* £15 per month to Child Trust fun savings in CASH
* £15 per month in a traditional savings account with a building society
* £20 per month in a child Stakeholder pension.

Is this a good spread. We are tentative investors having lost a lot of our money in sharea isa’s. Maxine  
Click here to find what Steve wrote.

Question: Hi Steve, My wife has been left a few thousand from her mother for the benefit of our two sons when they become 18. They are now 15 and 13. Any suggestions where the money should be put? We currently receive child tax credit and don't wish to have that reduced. Thanks, Dave
Click here to find what Steve wrote.

Question: I have 3 grandchildren and wish to open a trust fund (discretionary fund) for each with an initial lump sum of £500 and perhaps myself and others adding to this occasionally. Is this possible? Pete
Click here to find what Steve wrote.

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