Question
Do you have a guide to IFAs, and do you rank them by performance/fees/any other criteria? Answer
I'm afraid not, for the simple reason it would be incredibly difficult to compile.
The first hurdle is that most IFAs don't publicly publish their fees. Most proclaim they offer good value for money, but don't disclose fees on their website - which I think is telling in itself.
The second hurdle is that it's nigh on impossible to compare IFA investment performance. Firstly, I don't know of any IFAs that publish such data and secondly it would be very hard to compare like for like in any case, as portfolios can vary widely depending on client needs.
Quality of advice is a very important factor, but again hard to measure unless an impartial observer carries out a 'mystery' shop by going through the advice process with a large number of IFAs, which would prove very time consuming.
And the other main hurdle is measuring on going service which, in most cases, is very important.
Existing clients tend to be the best source of feedback about an IFA, but even this can be haphazard. I've lost count of the individuals I've encountered who think their adviser is great (usually because he/she appears a nice/friendly person) but have been ruthlessly taken for a ride with poor quality/expensive advice that's immediately apparent to a trained eye.
A website called vouchedfor is trying to make finding a good IFA easier by acting as a portal for client reviews. However, the number of advisers participating is currently small and since I couldn't find any negative reviews it all seems a bit one-sided. But then maybe that's not surprising, vouchedfor makes money by selling leads to IFAs, so it's in neither the site's nor IFAs' interests to publish negative reviews. Plus, as mentioned above, clients (with respect) are not always the best judge of the quality of advice they've received.
Sorry for the negative answer - but trying to find a decent IFA is sadly still something of a lottery...
Do you have a guide to IFAs, and do you rank them by performance/fees/any other criteria? Answer
I'm afraid not, for the simple reason it would be incredibly difficult to compile.
The first hurdle is that most IFAs don't publicly publish their fees. Most proclaim they offer good value for money, but don't disclose fees on their website - which I think is telling in itself.
The second hurdle is that it's nigh on impossible to compare IFA investment performance. Firstly, I don't know of any IFAs that publish such data and secondly it would be very hard to compare like for like in any case, as portfolios can vary widely depending on client needs.
Quality of advice is a very important factor, but again hard to measure unless an impartial observer carries out a 'mystery' shop by going through the advice process with a large number of IFAs, which would prove very time consuming.
And the other main hurdle is measuring on going service which, in most cases, is very important.
Existing clients tend to be the best source of feedback about an IFA, but even this can be haphazard. I've lost count of the individuals I've encountered who think their adviser is great (usually because he/she appears a nice/friendly person) but have been ruthlessly taken for a ride with poor quality/expensive advice that's immediately apparent to a trained eye.
A website called vouchedfor is trying to make finding a good IFA easier by acting as a portal for client reviews. However, the number of advisers participating is currently small and since I couldn't find any negative reviews it all seems a bit one-sided. But then maybe that's not surprising, vouchedfor makes money by selling leads to IFAs, so it's in neither the site's nor IFAs' interests to publish negative reviews. Plus, as mentioned above, clients (with respect) are not always the best judge of the quality of advice they've received.
Sorry for the negative answer - but trying to find a decent IFA is sadly still something of a lottery...
Read this Q and A at http://www.candidmoney.com/askjustin/869/guide-to-ifas
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