Financial advisors are not all equal!

There are several different types of financial advisors in the UK and, if currently seeking financial advice, it is important for you to understand the major differences between them. Just as not all practitioners of medicine are the same - there are paramedics, auxiliary nurses, nurses, GPS, registrars, and consultants, for example - are neither financial advisers of the same!

Types of financial advisors

There are three main categories:




They Tied advisers, who often work for a bank or an insurance company only are permitted to advise on products of the company; Multi-tied advisers, who are able to offer advice from a joint panel limited companies; independent financial advisers (CMI) who will offer impartial advice from the whole of the market.
The importance of independent financial advice

CMI differs from tied advisers and multi-tied, not only because they offer all the consulting market, but also because they do not represent a company - act as a representative of your customer, and is their primary responsibility to act in the best interest of their clients in all momento.CMI also is to offer customers the option of paying fees for Commission from the supplier of the product.

Once an IFA has carried out a finding made detailed with you, so that he (or she) can fully understand your current financial situation as well as financial needs and objectives, he disappears and do some research to find suitable financial products for usted.A continued, will submit its recommendations to you in a follow-up meeting.

Qualifications

Minimum qualifications: all assessors giving investment advice should have the minimum qualifications for the certificate in financial planning (CertPFS) or its predecessor the certificate Planning Financial (FPC) from the Chartered Institute of insurance (CII), or the certificate for financial advisors (CeFA) School of IFS finance.

Higher qualifications: by the end of 2012 advisors wishing to continue giving investment advice should have achieved higher qualifications - diploma in financial planning (DipPFS) of the CII, or diploma for financial advisors (DipFA) from the ICF.Approximately one third of all financial advisers in the UK are currently qualified for this level already.The others are studying hard!

Certificate Financial Planner: this is a qualification recognised internationally for financial advisors from around the world United Kingdom is awarded by the Institute of Financial Planning (IFP).To convert it to a Certified Financial Planner (CFP) a financial advisor first must hold the DipPFS, or equivalent qualifications, must have at least relevant financial services three years of experience and must have worked in a case study to produce a financial plan detailed a level enough height to be approved by the IFP examining board.They must be members of the IFP, abide by a strict code of ethics and are committed to continuing professional development (CPD).

Chartered Financial Planner: become Chartered Financial Planner - the pinnacle of the profession of financial planning - counsel must be a member of the personal finance society (PFS), having relevant experience at least five years of and undertake to continue to develop profesional.Él or she must also obtain the diploma of the CII in financial planning, which is the highest rating currently granted by the CII advanced consultants financieros.La CII operates a system of points for their exams services financieros.Por example, be achieved 70 points to be awarded the certificate in financial planning and a more than 70 points to be awarded the diploma in financial, making a total of 140 puntos.Sin however, to be awarded the advanced diploma in financial planning candidate planning has to win at 290 points - more than four times the minimum financial advisers requirement!

CFPs and Chartered financial planners elite demonstrated financiera.Han, not only advanced technical knowledge and expertise in financial planning planning profession, but also an exceptionally high commitment with its clients time and money have been spent in the pursuit of their qualifications to enable them to provide the highest level of advice.

They are important qualifications of financial advisers? surely there are many excellent advisors have higher qualifications (yet). does, however, if you have a serious illness, would expect that the doctor to refer you to a highly qualified and experienced consultant would not? CFPs Chartered financial planners are as consultants and the financial planning profession and the good news is that, unlike of the medical profession, you can directly consult.