If your finances are complicated or you need advice on a particular financial product a financial adviser can help. Firms must be authorised by the Financial Services Authority (FSA) to advise on most financial products. This means they must follow certain rules and standards when dealing with you.

What is financial advice?

When you get financial advice, the financial adviser looks at your individual circumstances and needs and recommends financial products to meet them. This often involves a face-to-face meeting, but you can get advice in other ways, for example by telephone, email, or through the post.

If you buy without advice you have less protection than if you buy with advice.

What’s covered by financial advice?

The FSA regulates financial advice for most types of investments, mortgages and general or protection insurance. To check the details, follow the links below. If you receive unsuitable advice on these products, there’s a formal complaints procedure and system for putting things right.

Some advisers specialise in one area, such as insurance, investments or mortgages, while others may cover several.

‘Keyfacts’ documents describing service and costs

Under FSA rules financial advisers advising on investments must give you two ‘Keyfacts’ documents: ‘About our service’ and ‘About the cost of our service’. These explain 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) and how you’re being charged for the service (fees and/or commission).

A financial adviser can only say they offer independent advice if they recommend from the whole market and offer you the option to pay a fee rather than commission.

Mortgage advisers and insurance advisors will also give you ‘Keyfacts’ documents.

‘Key features’ documents describing products

If recommending an investment-type product an adviser must also give you a ‘key features’ document before you buy. This document explains the key features, terms costs and risks of the product in a standard format to help you understand and compare it to other products.

How to find a financial adviser

You’ll find financial advisers listed in telephone directories and business pages, and on the internet. You can 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.

Source: DirectGov. Crown copyright.