Why Should You Choose a Chartered Financial Planner?

Why should you choose a Chartered Financial Planner?

People seeking professional financial advice on critical subjects such as Financial & Investment Advice, Retirement Planning, or Estate Planning should seek out an Independent Financial Adviser who has attained Chartered Financial Planner designation.  

A Chartered Financial Planner is someone who has extensive academic credentials and market understanding to back up their advice and assistance. According to the Chartered Insurance Institute (CII), a Chartered Financial Planner is the "gold standard in financial planning" in terms of ethics and professionalism.

A Chartered Financial Planner would have successfully passed through several CII Diploma’s and CII Advanced Diploma examinations in many areas such as Taxation, Trusts, Pension, Investment and Financial Planning. The status offered to a Chartered Financial Planner is recognized through the CII Chartered Financial Planner logo, seen on website and stationery and sets them apart from other advisers.

A Chartered Financial Planner will understand and analyze your financial position prior to recommending a researched and relevant solution for you to consider. All advice is confirmed through suitability of advice reports, which help you make better informed financial decisions. Chartered Advisers are often specialist and expert in certain areas. The true value of using a Chartered and Independent Financial Adviser comes in the confidence you get from the planning process, the understanding of the products you hold and improving financial security.

Seven things to look for when choosing a Chartered Financial Planner:

1. Independent Financial Advice

A first step is to assure yourself that your adviser is classed as being independent. This means that they are not an agent for one or a small number of insurance companies but are an agent for you.

An Independent Financial Adviser can source financial products from the whole of market and therefore select the most appropriate solution for you. This is not the case when advisers are tied to the products of a single company.

An Independent Adviser will clearly state their status and use the well know white £ sign on a blue background on their website and stationery.

2. Chartered Financial Planner Accreditation

Chartered Financial Advisers are seen by the Chartered Insurance Institute (CII) and Personal Finance Society (PFS) as the highest standard for financial planning practice. A Chartered Financial Planner would have successfully passed several CII Advanced Diplomas in many financial disciplines and it is the considerable academic qualification and resulting market knowledge that back up their advice and guidance. Chartered Financial Planners help you make better informed financial decisions.

A Chartered Financial Adviser will promote their status through the use of the CII Chartered Financial Planner logo on their website and stationery.

3. Financial Conduct Authority

All Financial Advisers have to be authorized and regulated by the Financial Conduct Authority (FCA).

4. Network Member or Directly Authorized

Financial Advisers can either be authorized and regulated directly by the Financial Conduct Authority (FCA) or be part of a Network of IFA’s in which the network or host company is authorized and regulated. The network member is regulated by the network, not the FCA.

The larger the firm and the greater its resources usually means that it will more likely to be directly authorized and regulated by the Financial Conduct Authority.

5. Investment Research

Some Financial Advisory firms will conduct extensive investment selection research “in house” in order to be much closer to the investment portfolio selection decisions, whilst others will leave these decisions to third party investment providers.

Independent Financial Advisers can offer both in house researched investment solutions as well as third party solutions.

6. Specialist Knowledge

You may have a particular need for seeking financial advice and it is therefore important to ensure that your adviser has all the relevant qualifications, knowledge and experience to deal with your area of need. A good example of this is Defined Benefit Pension Transfer advice where only a limited number of Financial Advisers have the relevant CII qualifications. A Chartered Financial Adviser is most likely to have all areas covered by qualifications.

7. Sound Financial Standing

If you are seeking financial advice from a firm of Chartered Financial Advisers it would be reassuring to know that the firms finances themselves are in good order. There are a number of company record and credit websites that you can check a company’s financial well-being on.  

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