How do I know my IFA is independent?

By THIS IS MONEY
Updated: 06:21 EST, 8 June 2010

What questions can I ask independent financial advisers to make sure they really are independent and what qualifications should I be looking for? M.M., Leeds

Karen Barrett

Karen Barrett, chief executive of Unbiased.co.uk, replies: To find out if an independent financial adviser really is 'independent', you should ask them whether they are independent, multi-tied or tied. You should also check that they intend to stay independent after 2012 following the Financial Services Authority's Retail Distribution Review.

If you are looking for an IFA and want to ensure their independence, you can search via Unbiased.co.uk for a local adviser in the knowledge that all firms listed on the site have declared to us that they are independent for all product areas listed (such as pensions, investments, mortgages etc) and we also check our database against the FSA database on a weekly basis.

Once you've selected an adviser who you are confident is truly independent and fits your other requirements, ask them what qualifications they hold. We have made it easier to understand the qualifications held by an IFA by splitting them into 'level A' and 'level B'.

Level A qualifications are equivalent to A-level standard and they are currently the minimum level of qualification required to become a financial adviser, such as the CII's FPC and Cert FP, the IFS CeFA or the CIOBS CIP qualification.

Financial advisers with Level A qualifications have a broad-based understanding of the financial services industry. Advisers qualified at this level are able to use their knowledge and skills to advise consumers on a range of financial products, including pensions, investments and protection (life and health).

Level B qualifications are set at a standard equivalent to components of a university degree, and financial advisers with Level B qualifications demonstrate a high level of expertise and have a more specialised knowledge of financial products. They are able to provide detailed analysis of financial information and can devise solutions to complex financial problems.

You can search for particular incremental qualifications by product area on the Unbiased.co.uk 'find an IFA' search or you can use our search below: