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Different individuals and firms will probably have very different
ways of dealing with their clients. The following description is
designed to give you a rough guide basic outline of what each person
does, so that you have a better idea of the type of adviser you may
need. Different disciplines have very different regulatory responsibilities.
This should be one of your key questions when initially meeting a
financial professional. Disciplines are included in alphabetical
order.
Accountants
Will usually carry out the following services for you:
- Completion of tax returns
- Producing accounts for self-employed or business owners
- Provide tax and strategic planning advice for businesses
The more qualified Accountants are Chartered Accountants who have
to abide by a code of conduct set out by the Institute of Chartered
Accountancy. You do not have to have any qualifications to market
yourself as an Accountant, but Chartered Accountants have to have
passed professional qualifications.
Book-keepers
Mainly for those who are employed or self-employed. Most book-keepers
will understand basic principles of Accountancy but they will usually
be cheaper than Accountants. A book-keeper will often work with
Accountants running the day-to-day accountancy package and will
then hand the job over to the Accountant to produce the year end
accounts and any required tax planning.
Debt Counsellors
Many of these organisations will be run by volunteers and charities
who seek to help those who get into debt, to help both organise
their monthly repayments and to help deal with creditors, often
coming to arrangements in the worst cases.
Insolvency practitioners
In some circumstances individuals will need to make arrangements
with those to whom they owe money, the creditors. An Insolvency
Practitioner is experienced in dealing with the negotiations to
make a clean break from previous debts.
Insurance broker
An Insurance broker works to try to find you the best insurance deal
for the risk that you need covering. This would usually include
all aspects of business insurance, household and car insurance
as well as private medical insurance. Insurance brokers need to
be authorised and regulated by the Financial Services Authority.
Financial Advisers – general
Some advisers will concentrate on product sales and finding the
most suitable product for a client, whilst others will focus more
on planning, setting objectives and providing advice, although each
will probably end up helping with:
- Retirement planning and financial independence
- Mortgages and debt repayment
- Saving for a specific purpose
- Investing
- Protecting
- Tax planning
Each individual Financial Adviser must be authorised and regulated
by the Financial Services Authority in order to give advice. Within
this group there are 3 main variety of Financial Adviser with the
differences being explained below:
Financial Advisers (Whole of market/Independent)
These advisers will usually aim at providing holistic financial planning
and when a product is required will select from those in the whole
of the market. Independent Financial Advisers must go a stage further
and always offer their client the option to pay for the advice
they receive by fees.
Financial Advisers (Limited Group
of companies – also
known as Multi-tied)
These advisers will mainly receive a commission from the product
theyrecommend you to purchase, although there is no reason why they
cannot charge fees (depending on their terms of business). When selling
a product they will recommend a product from a limited range of pre-selected
plans which they hope will fit a client’s needs as good as
any other on the market.
Financial Advisers (Single group
of companies – also
known as Tied)
These advisers also mainly receive a commission from the product
they recommend you to purchase, although again there is no reason
why they cannot charge fees (again dependent on the terms of business).
When selling a product they will recommend a plan from the range
available in that company only.
Mortgage broker
These can operate as Whole of Market, Multi-tied and tied agents
in the same way as Financial Advisers. The same rules apply to
mortgage advisers and brokers as apply to Financial Advisers in
that the work they do is authorised and regulated by the Financial
Services Authority and is only available once certain threshold
qualifications have been passed.
Solicitors
The legal advisers which often have
an impact on people’s
finances. Solicitor’swill often be involved in:
- Conveyancing for a mortgage
- Writing & executing Wills
- Arranging and administering trusts
- Divorce and other financial separations
Solicitors are members of the Law Society and a Solicitor can only
trade as such, having attained the relevant qualifications.
Stock-brokers
Will be experienced in managing investment
funds on your behalf. You would often expect there to be a minimum
amount that stock-brokers will handle, depending on the firm. The
service provided is authorised and regulated by the Financial Services
Authority.
Will-writers
These are generally individuals who have not attained the same qualifications
as Solicitors but who are used to dealing with the specific aspect
of will-writing. Consequently this type of individual will usually
charge less for a Will than a Solicitor although the regulatory
protection will not be quite as robust.
Other
Other organisations are represented most notably Christian Banks.
These organisations have a clear Christian focus throughout their
entire operation.
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