Anyone can call themselves a “financial adviser”. The title is not protected, the marketing is uniformly reassuring, and the FCA register, while public, is not designed for someone trying to make a decision on a Sunday evening. So we do the work first. No firm receives an introduction from us until it has passed all four of the following.
One, regulation and permissions
We confirm the firm is authorised by the Financial Conduct Authority, and that the individual advising you is approved. That is the baseline, and it is not enough on its own, because authorisation is granted for specific activities.
A firm may be authorised to advise on investments and not hold the pension transfer permission. If your question is a defined-benefit transfer, an adviser without that permission cannot lawfully help you, however impressive their website. We check the permission against the work. It is the single most common thing consumers cannot check for themselves, and the one where the consequences of getting it wrong are largest.
Check us, too
Every firm we introduce can be found on the FCA register at register.fca.org.uk, and we will give you the firm reference number so you can look them up before you speak to them. If an adviser is ever reluctant to give you their FRN, that alone is your answer.
Two, qualifications and specialism
The minimum to advise in the UK is a Level 4 qualification. Many good advisers hold considerably more, and the letters matter less than whether the expertise fits your problem.
What the credentials actually mean
| Credential | What it signifies |
|---|---|
| Level 4 (DipPFS or equivalent) | The regulatory minimum to give financial advice. Necessary, not remarkable. |
| Chartered Financial Planner | Level 6, awarded by the Chartered Insurance Institute, with a continuing-development requirement. |
| Certified Financial Planner | Rigorous, planning-led, awarded by the CISI. Strong on cash-flow and lifetime planning. |
| Pension transfer specialist (AF7 / equivalent) | Required before a firm may advise on transferring safeguarded benefits. Non-negotiable above £30,000. |
| STEP, Resolution accreditation | Estate and trust work; divorce financial specialism. Relevant when your situation is one of those. |
We match specialism to need. An adviser who is excellent with retirement income is not automatically the right person for a business sale, an equity release decision, or a divorce settlement in which pensions are the largest asset.
Three, track record and complaints
We look at how long the firm has been established, whether the advisers have been where they say they have been, and what the firm’s complaints history looks like. A complaint is not disqualifying, any firm advising enough people for long enough will have one. A pattern is disqualifying, and so is the way a firm responds when it is challenged.
We also listen to what people we introduced tell us afterwards. That is a source of evidence no register holds, and it is the reason we ask.
Four, clarity of fees
A firm must be able to tell a prospective client, in writing and in pounds, what they will pay initially and what they will pay every year thereafter. Typical charges run to around 1%–3% for initial advice and 0.5%–1% a year ongoing, but the number matters less than whether the firm will state it plainly before you are committed.
Vagueness about cost is the most reliable warning sign in this industry, and it is the one a consumer can detect. Our guides on fees and costs set out exactly what to ask, and what a straight answer looks like.
What this standard cannot do
Vetting is not a guarantee. We can verify authorisation, permissions, qualifications, history and transparency. We cannot guarantee the advice you receive, the returns you achieve, or that you and the adviser will get along. The regulated relationship, and the responsibility for the advice, sits between you and the firm, as our terms of use explain. If a firm we introduced lets you down, our complaints procedure tells you exactly what to do, and we want to hear about it.
The four-point standard
- Regulation: FCA-authorised, with the specific permissions the work requires.
- Qualifications: at least the Level 4 minimum, with specialism matched to your need.
- Track record: established, verifiable, and no pattern of complaints.
- Fees: stated plainly, in writing, in pounds, before you commit.