What is a Financial Adviser?

A financial adviser is a professional who renders investment advice and financial planning services to individuals and businesses. Ideally, the financial advisor helps the client maintain the desired balance of investment income, capital gains, and acceptable level of risk by using proper asset allocation. Financial advisers use stock, bonds, mutual funds, real estate investment trusts (REITs), options, futures, notes, and insurance products to meet the needs of their clients. Many financial advisers receive a commission payment for the various financial products that they broker, although "fee-based" planning is becoming increasingly popular in the financial services industry.

A further distinction should be made between "fee-based" and "fee-only" advisers. Fee-based advisers both charge fees and collect commissions. Fee-only advisers do not collect commissions, and thus do not face a conflict of interest created by commissions or referral fees paid by other product or service providers.

 
Here are some ways to find a good independent advisor:

• Get some referrals from someone with similar interests, risk levels and capital would help, but that is tough too.
• Interview the prospective advisors
• Read some books and invest in yourself so that you understand the jargon of your investments first.
• Contact at least 3 Independent Financial Advisors (IFAs)
• Find out how unbiased is the IFA’s advice is.
• How is your potential advisor paid? Check the commissions against industry average.
• Understand the products the IFA is selling to you.
• Get references. A good advisor should have good references. period.
• Does your IFA’s products suit your investment strategy and risk profile
• Is your IFA registered by the financial regulator, the FSA, to offer official investment advice. Check their documents. If not sure confirm with the regulator.
• Know your IFA- where they work, products they sell, recommendations, internet check etc