Questions to ask before choosing a financial adviser

Choosing a financial adviser is a bit like choosing a solicitor or an accountant — the working relationship can last years, and it is far easier to ask the right questions upfront than to unpick a poor fit later. None of what follows recommends any specific adviser or firm; it is simply a checklist of what is reasonable to ask, and why each question matters.

Qualifications are the natural starting point. To give regulated financial advice in the UK, an adviser is required to hold at least a Level 4 Diploma in Regulated Financial Planning, or an equivalent Level 4 qualification such as the Diploma for Financial Advisers — this is the FCA's minimum standard, not an optional extra. Many advisers hold qualifications above this baseline, and some choose to become Chartered, a higher designation through bodies such as the Chartered Insurance Institute, though Chartered status is not a legal requirement in the way the Level 4 minimum is.

Alongside the qualification itself, it is worth asking to see a current Statement of Professional Standing, usually shortened to SPS. This is a document, renewed annually, that confirms an adviser holds an FCA-recognised Level 4 qualification and has completed the required continuing professional development for the year. Anyone actively giving investment, pension, tax or trust advice is required to hold a current SPS, so asking to see it — or asking which professional body issued it — is a fair and specific question, not an awkward one.

It is also worth establishing, early on, whether a firm offers independent or restricted advice, since the two labels describe a genuine difference in how wide a range of products an adviser can consider — we cover what each term actually means, and how advisers typically charge, in our separate article on independent versus restricted advice. Related to that is the fee question itself: how the adviser charges, whether that is a percentage of assets, a fixed fee, or an hourly rate, and what the total cost is likely to be for the specific piece of work you need. Current rules require this to be set out clearly and in cash terms before you are committed to anything, so it is reasonable to ask for it in writing rather than relying on a verbal estimate.

Specialisms are worth asking about directly too, since not every adviser covers every area of financial planning to the same depth. Some focus heavily on retirement and pension planning, others on inheritance tax and estate planning, others on protection and insurance, and others on a broader general practice. Asking what proportion of an adviser's client base looks like your own situation — for example, people approaching retirement, or people with a specific pension type — gives a reasonable sense of where their day-to-day experience actually lies.

It is also worth asking what an ongoing relationship, if you choose one, actually includes — whether that is a single piece of advice with no follow-up, or an ongoing service with a defined annual review, and what that review covers. And it is worth asking, plainly, what happens if something goes wrong: which firm you would complain to, whether the firm is covered by the Financial Ombudsman Service, and confirming — as covered in more detail in our article on checking FCA authorisation — that the firm and the individual adviser are both currently listed as authorised on the Financial Services Register.

A few further practical questions round out a reasonable checklist. Asking how long the firm has been trading, and how long a specific adviser has held their current qualifications, gives a sense of stability and experience, though a newer, well-qualified adviser is not automatically a weaker choice than a long-established one. Asking whether the firm holds professional indemnity insurance is another fair question for larger pieces of advice. And it is entirely reasonable to ask how many clients the adviser or firm currently looks after, and whether they are taking on new clients at all, since some smaller firms operate with limited capacity and prefer referrals over new enquiries from a directory or search.

None of these questions require any specialist financial knowledge to ask, and a professional, properly authorised adviser should be entirely comfortable answering all of them clearly, in plain language, before any advice relationship begins. This article is general information, not financial advice, and does not recommend any specific adviser or firm. Our directory lists UK financial advisers by area and specialism, and checking qualifications, fees and authorisation directly with any firm you are considering remains the reliable way to make an informed choice.

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