Advice from someone you can trust

It is getting easier to find an independent financial adviser (IFA) you should be able to trust.

Advisory firms who adopt what has been termed the New Model approach tend to portray similar characteristics - running good businesses that put the interests of their clients first.

The result is that locating an adviser who works for you, and not a life insurance or a pension provider, is easier than it used to be.

Some of the key determinants that separate a New Model Adviser from the traditional and outdated methods are:

Planning

A new model adviser will generally be looking to help you attain your life goals and ambitions with financial advice tailored to help you attain the future desired lifestyle you seek.

You will buying from them advice and not being sold a product.

Genuinely Fee Based

All IFAs must offer clients the option of paying a fee rather than agreeing to the adviser being paid commission by a financial services product provider. Paying a fee means you are much more likely to get unbiased advice.

New Model Advisers will have clear charging structures for their different levels of service.

Highly Qualified

New model advisory firms will contain planners who have qualified as either certified financial planners (CFP) and/or chartered financial planners. These are the two highest qualifications IFAs can attain. Do not confuse the CFP with the certificate in financial planning, which is the most basic qualification all IFAs must have.

By the end of 2012, the bar will be raised and all advisers will need to have a certain minimum qualification to be able to continue to advise.

Satisfied Clients

Asking for feedback from clients on services offered is a sign of a well run business. This allows the firm and its advisers to learn what is and what is not working and helps in strengthening ongoing client relationships.

Technologically Advanced

Forward thinking firms will make good use of information technology, not something that can be said of the ordinary IFA, with websites that enable clients to track their investment portfolio online.

Additionally, the use of blogs and social media are becoming an increasingly valuable tool to aid effective and efficient communication with clients.