How can I make sure my investment is safe when choosing a new advisory farm?

Investing hard-earned savings through an advisory firm can be daunting, but understanding your line of trust and investigating financial service providers (FSPs) can help you with that financial anxiety. It can be relieved. If you want to make sure your investment is being processed properly, here are some questions to ask the financial adviser you want to engage with.

What kind of service do you offer?

First of all, it is important to find a planner who can advise you on the whole range of financial planning. It would be better to have one financial planner who can build professional relationships and understand your needs to help you achieve your financial goals.

Who owns your business?

Ask about customary ownership, shareholders, business structure, staff turnover, and business succession plans. This is very important to know from the beginning, as you want advisors who are investing in their company as well as you, continuity and strong ties produce great results.

Important disclosures should be provided by a financial adviser.

When contracting with an advisor, you must provide a letter of introduction that provides important information about your business, your registered license category, your relationship with your product provider, and your advisor’s experience and eligibility. To deal with. Within this document, any conflicts of interest will be disclosed and the complaint process will be explained in detail.

How do you earn a commission?

Your financial adviser must be advance and completely transparent about how they earn their fees. Clarifying how the FSP configures the charges is important to understand that the service you are paying matches the charges you are charging. This can also highlight whether the advisor’s reward structure tempts them to act for their own benefit, not you.

Are you registered with FSCA and in good condition?

Reputable financial planning practices must be registered with the Financial Sector Conduct Authority (FSCA), have an FSP number, and have a good relationship with this regulatory body. All FSPs are required to provide an FSP number in all marketing materials.

What are your qualifications and experience?

Be sure to ask your financial adviser about the qualifications and designations they hold and how their experience can help them with their specific financial needs. For example, if your financial adviser has been designated as a Certified Financial Planner®, this means that you are registered with the Financial Planning Institute and agree to the Code of Conduct.

Professional liability insurance covers professional companies (financial services providers, accounting, engineering, medical, etc.) who need protection from the financial burden of legal liability to their clients. Liability must be the result of the actions of employees of the company in servicing clients.

For example, FSPs may be held liable by law if they serve their clients and provide inappropriate advice, or if they do not follow appropriate procedures that result in financial loss to their clients. For certain businesses, it is advisable to apply professional liability insurance to ensure that the claims incurred are covered. Therefore, the purpose of professional liability insurance is to assist professional service providers in the means of resolving claims. Investors cannot make a claim directly to a financial adviser professional liability insurance company.

If a complaint needs to be filed against the FSP, the client must first contact the provider to resolve the complaint. Professional service providers need to carry out complaint procedures to help clients resolve their complaints in a timely manner. After the complaint has been sent to the financial services provider, if the client is not satisfied with the outcome of the complaint, the client can contact the FAIS (Financial Advisory and Brokerage Services) Ombudsman for further assistance.

How can I make sure my investment is safe when choosing a new advisory farm?

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