Friday, 15 July 2016

Financial advisors are not all the same!

Financial advisors are not all the same!

There are different types of financial advisers in the UK, and if you're just looking for financial advice, it is important for you, that you understand the key differences between them. Just as not all medical professionals are the same - there are paramedics, auxiliary nurses, nurses, doctors, registrars and consultants, for example - not all financial advisors the same

types of financial advisors

There are three main categories categories ~~ POS = HEADCOMP:

  1. Tied consultants , which usually work for a bank or an insurance company. You are only authorized to advise you on their own company's products;

  2. Multi-band Consultants , which are able to offer advice to companies of a limited set Panel;

  3. Independent financial advisers (IFAs) that will offer unbiased advice from the whole market.
The importance of independent financial advice

IFAs differ from tied and multi-tied advisers, not only because they offer all market advice, but also because they provide no company - they act as representatives of their customers, and it is their primary responsibility in the best interest of their customers to act at any time. IFAs must also offer the option of paying customers by fee rather than commissions from product providers. actually performed

Once an IFA with you a detailed has to find, so that he (or she) can fully understand current financial situation and your financial needs and goals, he goes away and some of the research that the to find best suitable financial products for you. He will then present you with his recommendations on a follow-up meeting

Qualifications

minimum qualifications . All consultants must provide investment advice to the minimum requirements of the Certificate in Financial Planning (CertPFS) or its predecessor, the Financial Planning Certificate (FPC) from the Chartered Institute of Insurance (CII), or the certificate for financial advisers (CEFA) from the IFS School of Finance ,

higher qualifications : who in 2012 consultants wish until the end of the year to give investment advice, still higher qualifications who have achieved - either the Diploma in Financial Planning (DipPFS) of the CII, or the diploma for financial advisors (DipFA) from the IFS. About one third of financial advisers in the UK are currently already qualified at this level. ! Hard

Certified Financial Planner The other study: This is an internationally recognized qualification for financial advisers around the world. In the UK it is awarded by the Institute of Financial Planning (IFP). To become a Certified Financial Planner (CFP), a financial advisor must first hold DipPFS, or have an equivalent qualification must work at least three years of relevant experience in finance services and based on a case study, a detailed budget of producing sufficiently high standard of the IFP Audit Committee to get redirected. You, the members of the IFP, to be on a strict code of ethics, and commit to continue the professional development (CPD)

Chartered Financial Planner . To a Chartered Financial Planner are - the height of the financial planning profession - consultants have professional development continues to be a member of the Personal Finance Society (PFS), have at least five years of relevant experience and commit. He or she also has the CII Advanced Diploma gain in financial planning, which is being awarded the highest qualification of the CII financial advisor. The CII operates a points system for the financial services exams. For example, you have to reach 70 points, the certificate will be awarded in financial planning and an additional 70 points to the diploma awarded in financial planning, to make a total of 140 points. However, to the Advanced Diploma will be awarded in financial planning, the candidate has to gain 290 points - more than four times the minimum requirement for financial advisors

CFP and Chartered Financial planners are the elite of the financial planning profession. They have demonstrated not only technical skills and financial planning skills, but also an exceptionally high level of commitment to their customers by the time and money they have spent in achieving their qualifications so she can move to give the highest level of the Council.

not matter "financial advisor qualifications? Certainly there are many excellent consultants who do not have higher qualifications have not (yet). However, if you have a serious illness, you would expect your doctor qualified to to reflect and experienced consultants would not you? CFP and Chartered financial planners as consultants financial planning profession and the good news is that, unlike in the medical profession, you can ask them directly.

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