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If you go to your high street bank you may be greeted by a financial adviser, but they could well be ‘tied’ to recommending and promoting the products of the bank, or a single insurance/investment company to which the bank has an allegiance. So why do we need independent advisers, and how can customers be sure they are getting a fair deal?
The Financial Services Authority (FSA)
The FSA, to give it its shorter title, is the government watchdog that regulates all financial and insurance firms – this ranges from the largest multi-national bank, to the one man financial adviser. The FSA handbook of rules and guidance lays down the laws to which all IFA’s must adhere, and the way they treat customers is governed by the ‘Conduct of Business’ (COB) rules. The rules are freely available from the FSA’s website – www.fsa.gov.uk. Please note: this is an external site and our firm is not responsible for the content.
How do I know the company I am dealing with is independent?
Independently advisers are able to select the correct product for customers from the entire market – that means they can potentially recommend any product from any insurance company providing it suits the customer’s needs and objectives. With such a great choice of companies, investments and saving tools the customer can be reassured that they are not simply being provided with a standard recommendation and are getting personalised advice.
To ensure you do get personal advice Steggles & Co will collect certain details about you and your circumstances to enable us to correctly advise you. Remember to be as open and honest as you can, because the more information you provide, the more accurate we can make recommendations.
From June 2005, all financial advisers have to provide their customers with 2 important documents:
Key Facts’ about our services tells customers about our firm’s activities, whether they offer advice from the whole market, or a range of companies, or even a single firm. It also includes information about the firm being registered with the FSA, and how to make a complaint, should customers be dissatisfied.
Each adviser will usually have their own ‘Terms of Business’ in addition to the Key Facts. This will include more information about the firm.
You can ask to see these documents at any time.
What protection do we have?
Steggles & Co will always endeavour to do the very best for you. Whenever you deal with a financial adviser you will receive details on the complaints procedures offered by the firm. If you wish you can request a copy of these procedures at any time.
When our adviser is advising you on regulated products (including investments, insurance and mortgages) you have the protection of the Financial Ombudsman Services Compensation Scheme (FSCS).
If you are unhappy about the advice or service you have received you should firstly contact the firm that provided the advice or service. This gives them the chance to put things right and/or to provide their own version of events. Should you remain dissatisfied you can refer your complaint to FOS who will investigate the complaint independently and make a ruling. FOS work with customers and financial advisers to resolve a complaint, and where they do have a ruling it is binding upon the firm.
If you try to contact a firm with a complaint and the firm is dissolved, or unable to meet its obligations you may have recourse to the FSCS. This is a service funded by all the companies within the industry to protect customers where firms have closed or gone into liquidation.
Anything else I should know?
Some financial advisers do give advice on products that are not regulated by the FSA – such as buy-to-let or general taxation advice. Steggles & Co will explain to you when you are receiving advice on an unregulated product. It is important you are happy with the advice as you do not have the added protection of FOS or FSCS when dealing with unregulated products.
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