Financial Advice has NOT suddenly become more expensive, but the way you pay for it has changed.
Financial advice has never been free. If you have received financial advice in the past, you most probably paid your adviser by commission which was taken from the sum you invested in a particular product.
Since 31 December 2012, the way you pay for financial advice has changed. Instead of you paying commission on new investments, your financial adviser now has to explicitly state at the outset what the cost of advice will be and together you will agree how you will pay for it. This way you know exactly what you are paying for the advice. You also know that the advice you receive is not influenced by how much your adviser could earn in commission from your investment.
These changes are part of the Retail Distribution Review, established as part of the Financial Services Authority’s, (FSA) consumer protection strategy. The whole point is to make financial advice more transparent, more professional and reduce the possibility of mis-selling. This will help you to shop around and compare the true cost of advice. As part of this change, the FSA has also increased the amount of qualifications a financial adviser requires.
So what does that mean for you? At LGBT Finance, the financial advisers we recommend are not only LGBT-friendly; they will also provide an initial consultation at their own expense. You can use this meeting to discuss their services and charges. There are various options: you can pay for advice upfront, but there may be good reason to deduct it from the money you are investing. For example, if you are investing in a pension product whose contributions are tax-deductible, it may be more tax-efficient to pay for the advice as a deduction from the amount you invest.
So, financial advice is NOT going to get more expensive, but how you pay for it will change. But this will all be set out fully at your initial meeting. There will be no nasty surprises later on. Why not get in touch with us to see how our financial advisers can help you plan for the life you want. Enter your postcode under the map on your right to find an LGBT-friendly financial adviser near you.
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