What to Expect from Your Adviser

Hannah Beecham

Cementing the Relationship

Know in advance what you'll be expected to sign by way of a contract with an independent financial adviser.

Once you are satisfied with the advice being offered and in order to cement the relationship you will need to sign a client agreement which will form the contract between you and your financial adviser. This agreement should confirm how the adviser will proceed, how he or she will communicate with you and the rate and time at which fees or commission will be charged.

An essential point to clarify at this stage, and in writing, is that no charges will be made unless agreed in advance. Never sign an agreement you don't fully understand, or put your name to a blank form leaving the adviser to fill in the details.

The written agreement should clearly identify the adviser's regulatory body and governing jurisdiction. Don't believe what you read on a business card, headed notepaper or a website. Check this independently. If an adviser seems reluctant to disclose information of this kind, or is unable to provide references, take your business elsewhere.

Check-list

Before signing on the dotted line ensure the following questions have been answered to your satisfaction:

• Who owns the adviser's business?
• Who regulates the adviser's business?
• What is the reputation of the adviser's chosen jurisdiction?
• Will the adviser provide references and client testimonials?
• Why is the adviser recommending a particular product?
• How is the adviser paid - fee or commission?
• How regularly will your financial commitments be reviewed?