You Ask, We Answer – Is Financial Advice Free?
11 Sep 2015 | COMMENTS: 0 | Author: Carlo Ruggiero | we answer
Sometimes, we turn to the internet for answers to our financial questions, only to find that there’s nothing out there that can help. We’ve had a look at what people are searching for, and will be shedding some light weekly on the most commonly asked questions. This week, we’re answering “Is financial advice free”.
Q: Is financial advice free?
A: Financial advice from a financial advisor is not free.
Free advice cannot legally be called advice, and must be referred to as guidance (similar to the Pension Wise system launched following the pension reforms). Advisers can also not offer advice unless they are registered with the Financial Conduct Authority (FCA).
The fee you pay to a financial advisor goes some way to protecting you; if advising you on regulated products, you have potential for recourse should you be misadvised, along with the protection of the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS).
You’ll need to pay for advice, but an FA will usually offer a free consultation to outline your options and review your circumstances.
All financial advisors you connect with via Local Financial Advice will offer a free consultation with no obligation.