5 practical ways to choose the right financial planner

Finding the right financial planner for your clients to work with will add value to their lives, as well as their wealth and wellbeing.

Research from Royal London revealed that “financial advice is game changing”. Over a 10-year period, on average, people who took financial advice were £47,000 better off than those who took care of things themselves.

So here are five ways to make sure you introduce your clients to the right financial planner.

1. Consider the kind of relationship that will best serve your client

Does your client want a simple transactional relationship or one that will strengthen and grow over time? If your client simply wants to get some protection in place, establish a will, or set up a pension, a financial adviser will help.

A financial planner will do all of the above too, but they’ll take a long-term holistic view of your client’s financial situation and, in doing so, will form a long-standing and rewarding relationship.

A great financial planner will work with your client to understand what’s important to them. They will ask questions about their life goals and help them plan how to fund the lifestyle they desire.

Make sure the financial planner or adviser you introduce your client to is independent, and not restricted to a limited number of products and services they can recommend.

2. Make sure they are authorised and have the right experience

All financial advisers must meet QCF level 4, which is equivalent to completing the first year of a degree course.

The subject areas covered under QCF level 4 are:

Regulation and ethics
Investment principles and risk
Personal taxation
Pensions and retirement planning
Financial protection (Level 3)
Financial planning practice

This is the most basic expectation for any financial adviser.

At Ardent, we’re proud of our Chartered status. And our financial planners have gained the well-respected quality mark of being Chartered Financial Planners.

3. Check that the interests of your clients align with those of the financial planner

Most financial planners will meet with potential clients for free. The first meeting gives both parties the chance to get to know one another before any money changes hands.

You’ll know from your own client relationships how important it is that you get along well. With a financial planner, this is vital for forming a long-lasting and financially rewarding relationship.

A free first meeting with a financial planner will allow crucial time for your client to understand whether values align. Through the conversation they should be able to get a good feeling about what the financial planner, and their firm, stands for.

4. Check how they charge and make sure the fees align with client needs

Good financial planners make their fees simple and transparent. They will be clear about what they charge and open in how they communicate this to their clients.

Letting clients know in advance how much they’ll pay and what for will give them clarity and reassurance.

Following the first free meeting, designed to understand more about your client’s circumstances and needs, they’ll be able to give a clear answer about how much the service they need will cost.

Make sure they give this as an amount of money, and not just a percentage figure.

Paying a fee that’s a percentage of your client’s wealth means the fee they pay will increase proportionately as their wealth grows. This subtle but significant increase can erode wealth.

Check that the financial planner tailors their fee to your match client’s requirements and circumstances. Make sure the cost reflects the service they will receive.

5. Encourage your client to speak with others who have worked with the financial planner

Personal recommendations or references and testimonials from existing clients can help you get an idea of the service you should expect from the financial planner you’re intending to recommend to your client.

Do your homework by asking to speak with one of the planner’s long-standing clients and, perhaps, another who has only recently become a client.

Check to see if the financial planner has any Google reviews or search for them on where you should find any areas of expertise and verified customer reviews.

Introducing your client to a financial planner is a big deal. Your client will have to entrust them with their financial wellbeing and be comfortable discussing personal matters with them. This is the beginning of a long-term relationship, so it’s important that you help them make the right decision.

Get in touch

If you have clients you think we can help, please get in touch. Email us at hello@ardentuk.com, or call 01904 655 330.