The Right Financial Advice? - Hot Topics Q&A

Q. I've recently been to see a financial adviser. She has recommended a number of new policies and investments to me.

How do I know that they are the right ones? Is there any proof/evidence that I can see before I decide to accept her recommendations?

A. You've not said what type of adviser you're dealing with. If it's a tied adviser (can only recommend the products of one company) then she's only obligated to ensure the products are suitable. If she's a multi-tied adviser she'll be able to recommend from perhaps a handful of companies.

Really, to get the best result you should ensure that she's independent, meaning she can select products from the whole of the market. For example, why choose an income protection plan from a list of 5 when there's over 50 contracts available on the market?

Once you're sure that she's independent (if she's not, find a new adviser who is), ask to see the research that's been done for her to arrive at the conclusions that she has. This should be to hand as all independent advisers MUST include this research on a client's file to demonstrate that the best advice has been given.