The Role and Responsibilities of a Financial Advisor Essay

675 Words Jun 4th, 2012 3 Pages
The role and responsibilities of a Financial Advisor – P4

A financial advisor is a professional trained in financial planning their role is to construct a comprehensive view of your financial status. There are several types of financial advisors, Independent Financial Advisors (IFA’s) help individuals or businesses, providing them with expert advice and using their knowledge to give their clients recommendations.
Financial advisors can also give guidance on savings, creating a budget and dealing with debt to ensure you reach your financial goals. To do this they must get to know their clients which includes going through all your personal details, your credit history, how much income you take into the home and what you spend it on,
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The average person would not be able to do this as well as an IFA as they have in depth knowledge of the products available and the terms and condition that apply to each one.

They will complete a fact find which means finding out all of the essential information about their client e.g. personal details, this ensures that when dealing with important topics such as mortgages and investments they are better equipped to find the right one for you. An IFA needs to be sure of where your financial status is heading in the future as a lot of these products are long term commitments, you do not want to be tied up in a mortgage that you can’t finish the payments on. They are also unbiased and answerable to the FSA so therefore must abide by strict rules and regulations, this means that the customer has access to file a complaint against the advisor or claim compensation for any wrong doings.

If you are very confident with the decisions you are making about your finances and have done a lot of research yourself you may not want to hire an IFA because of the fee’s involved. In reality you will be paying for a service that could save you a lot of money in the long term but is costing you in the short term. Accessibility is another issue, if you have to travel to see an IFA this will add to your costs of receiving the expert advice.


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