How to Choose a Financial Adviser

Navigating your finances can feel overwhelming, especially with the range of choices and complexity involved in everything from savings to estate planning. A great financial adviser doesn’t just offer investment tips – they become your guide, sounding board, and strategic partner. Choosing the right one could shape your financial wellbeing for decades.

This guide will help you choose the ideal financial adviser in the UK, tailored to your needs and life stage.

Understand Your Needs First

Before diving into adviser directories or asking for recommendations, take stock of your own situation. Key questions to consider:

What are your goals? Are you buying your first home? Planning early retirement? Funding education or building generational wealth?
How complex is your financial life? Simpler needs (e.g. budgeting, ISAs) may not require the same depth of advice as more intricate situations involving pensions, tax strategies, trusts, or business assets.
Are there emotional or legacy aspects? Planning for later life, dependants, or long-term care often requires advisers with soft skills and specialist understanding.

Clarity on your needs helps narrow the field to advisers who are best equipped to help.

Where to Start Looking

Here are some trusted ways to find qualified advisers in the UK:

Personal Referrals

Ask friends, family, or colleagues with similar goals. Trusted word-of-mouth remains powerful.

Online Directories

Unbiased: Filter by specialism, qualifications, and fee model.
VouchedFor: Includes adviser reviews and verified credentials.

Professional Bodies

The Personal Finance Society: Find advisers with Chartered or Certified status.
MoneyHelper: Government-backed financial education and guidance.

Spotlight: The Society of Later Life Advisers (SOLLA)

For those navigating later life decisions – such as care fees planning, equity release, wills, or complex family arrangements – specialist advice is essential. That’s where the Society of Later Life Advisers (SOLLA) comes in.

SOLLA helps people find advisers who are trained and accredited to handle the nuances of later life financial planning. Their directory connects you with professionals who understand not just the financial, but also the emotional and practical challenges of ageing.

💡 Lyfeguard is proud to be an affiliate firm of SOLLA – we recommend exploring their services if later life advice is relevant to you or your loved ones.

Qualifications and regulatory standing of the adviser should be verified to ensure you're receiving competent and lawful advice.

How to Evaluate a Financial Adviser

Once you’ve built a shortlist of potential advisers, the next step is to assess whether they’re the right fit for your needs, goals, and values. It's not just about qualifications — it's about alignment, transparency, and trust. Here's how to evaluate advisers thoroughly and confidently:

Check Qualifications

Not all financial advice is equal — and neither are the credentials behind it. A qualified adviser should hold respected, recognised certifications that indicate a high level of training, ethical standards, and ongoing professional development.

Look out for these leading titles:

Chartered Financial Planner – A prestigious designation awarded by the Personal Finance Society (PFS). It’s often considered the “gold standard” in UK financial advice, requiring extensive experience, advanced exams, and ethical adherence.
Certified Financial Planner (CFP) – A globally recognised certification that signifies in-depth financial planning expertise, especially around cash flow modelling, holistic planning, and retirement structuring.
Fellow of the PFS (FPFS) – This title shows a deep commitment to the profession, awarded only to experienced advisers who have undertaken additional specialist study.
Chartered Financial Analyst (CFA) – While less focused on retail advice and more investment-oriented, a CFA qualification indicates a high level of investment analysis skill, often used in portfolio management or wealth advisory.

Tip: Don't hesitate to ask the adviser what their designations mean, how they stay up to date, and how that benefits you.

Fee Transparency

Understanding how an adviser gets paid is essential. Not just so you know the cost — but so you can understand potential conflicts of interest.

There are several common fee structures:

Hourly Rate – You pay for the time spent on consultations, similar to a solicitor or accountant.
Fixed Fees – Some advisers offer set fees for specific services, such as pension reviews or retirement plans.
Percentage of Assets Under Management (AUM) – A popular model where the adviser charges an annual fee based on the size of your investment portfolio (e.g. 1% per year on £200,000 = £2,000).
Commission-Based – Common in areas like insurance or mortgages, where the adviser is paid by the provider for products you purchase through them.

Always ask:

How are you compensated?
Are there any additional costs (e.g. platform fees, product charges)?
Will your recommendations be influenced by commissions?

A trustworthy adviser will always provide a clear, written fee breakdown — and be happy to walk you through it.

Investment Philosophy

Every adviser has a different approach to investing, and it should align with your preferences and comfort around risk.

Ask questions like:

Do you build portfolios based on active trading or long-term diversification?
How do you assess and match my risk appetite?
Are you tied to particular investment providers or platforms?

Some advisers lean towards evidence-based investing (using broad index funds and focusing on long-term returns), while others may offer more bespoke or active investment strategies. There’s no one-size-fits-all — the key is to ensure their philosophy fits your mindset, time horizon, and values.

Experience Relevant to You

Many advisers have specific areas of expertise. You’ll want someone with hands-on experience solving the types of problems you face.

For example:

Retirement planning: Especially important if you’re approaching retirement or considering pension consolidation.
Later life and care planning: Look for SOLLA-accredited advisers.
Inheritance tax and estate planning: Particularly for high-net-worth families or those with complex estates.
Business owner planning: Such as tax efficiency, business succession, or director pensions.
Divorce or financial separation: Some advisers specialise in guiding clients through major life transitions.

A good adviser will be able to share case studies (anonymised) or examples of how they’ve helped people in similar circumstances.

Verify Authorisation and Conduct

Lastly — and critically — make sure the adviser is properly authorised and regulated.

FCA Authorisation: All financial advisers who offer regulated advice in the UK must be authorised by the Financial Conduct Authority (FCA). You can check their credentials on the official FCA Register.
Firm vs. Individual: Ensure both the individual adviser and the firm they work for are listed.
Disciplinary History: The FCA Register also shows whether there are any restrictions, warnings, or disciplinary actions against the adviser.

This is your financial safety net. Never work with an unregulated adviser — it means you won’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.

Interview Questions to Ask

Treat the first meeting like a two-way interview. Ask:

About Their Services

How do you build financial plans?
How often will we review my strategy?

About Fees

What’s your fee structure?
Are there any hidden costs or product commissions?

To Build Trust

Can you give examples of clients in similar situations?
What happens if my goals or income change?

To Gauge Rapport

Do you feel heard and respected?
Do they explain things clearly, without jargon?

Tip: Pay attention to how they make you feel – your comfort and confidence in their integrity matter just as much as their CV.

Red Flags to Avoid

Here are warning signs to walk away:

High-pressure sales tactics or urgency to sign.
Guarantees of high returns – especially with vague explanations.
Confusing or undisclosed fees.
Avoidance of questions about qualifications or past results.
Pushy product recommendations without first understanding your needs.

Trust your gut. If something feels off, it probably is.

Types of Advisers

Independent Financial Advisers (IFAs): Offer access to the whole market. Their advice is free from provider bias and tailored to your best interest.
Restricted Advisers: Can only recommend certain providers or products. This isn’t inherently bad – but transparency is key.

Always ask whether the adviser is independent or restricted, and why.

When to Consider a Financial Adviser

Professional advice is especially valuable for:

Retirement and pension drawdown planning
Investing lump sums (inheritances, bonuses)
Inheritance tax (IHT) mitigation
Equity release and later life care
Divorce and financial separation
Trusts, estate planning, and legacy strategies

Consumer Protections: If Things Go Wrong

Financial Ombudsman Service (FOS)

Resolves complaints between consumers and financial firms.

Call: 0800 023 4567
Visit: www.financial-ombudsman.org.uk

Financial Services Compensation Scheme (FSCS)

If your adviser’s firm goes out of business, FSCS may protect up to £85,000 per person, per eligible investment.

Visit: www.fscs.org.uk

Final Thoughts

Choosing a financial adviser is about more than spreadsheets – it’s about trust, clarity, and shared purpose.

✅ Take your time.
✅ Ask tough questions.
✅ Expect full transparency.

The right adviser will not only help you manage money, but also empower you to navigate life’s most important decisions with confidence and peace of mind.

Useful Resources

Unbiased: A platform to help you find financial advisers in your area: https://www.unbiased.co.uk/
VouchedFor: Website to find financial advisers with reviews and ratings: https://www.vouchedfor.co.uk/
The Personal Finance Society: Provides information on adviser qualifications: https://www.thepfs.org/
The Money Advice Service: Government-backed website offering information and guidance on financial matters: https://moneyadviceservice.org.uk/en