Finding a financial adviser involves a lot of research. After consulting with various advisers, you think you’ve found the one, but what if you’re not happy? Well, the good news is that switching financial advisers is really easy here in the UK. In this blog post, we’ll break down the steps of how to switch financial advisers.
Why might someone want to switch financial advisers?
For any financial adviser, it’s sad to see a client want to switch. Some common reasons that you the client might want to switch financial advisers include:
- Not being happy with the level of service you’re receiving, whether it’s communication related or advice related.
- Not happy with the value of the service you’re receiving because you feel like you’re paying too much.
- A change in personal circumstances and a need for different advice tailored to your new needs or you’ve moved and need a financial adviser who is more local.
- Your financial adviser is retiring.
- You’d rather go to an independent financial adviser rather than a restricted financial adviser.
- Getting a referral to a new financial adviser.
Now let’s talk a little more about reasons one might switch financial advisers:
You’re not happy with the level of service you’re receiving
In any relationship, communication is key. If you’re finding yourself being left on read or having to wait a long time for a response, you might want to switch financial advisers. If you’re not having at least one annual meeting with your financial adviser, you might want to switch.
Trust is also an important part of having a good rapport. When someone is dealing with your finances, you need to be able to trust them. Part of that trust is trusting their advice. If you find you can’t trust your financial adviser, it’s a good idea to switch.
You’re not happy with the value of the service you’re receiving
No one wants to feel like they are overpaying. When you hire an expert, you’re paying for their time and that comes at a cost. Most financial advisers charge based on a percentage of your investment. According to the FCA, the average cost is 2.4% for initial advice, 0.8% a year for ongoing advice (1.9% per annum with underlying product and portfolio charges factored in).
Here’s the kicker, most financial advisers do not have their fees listed on their website. At Plan With Neil, we have our fees listed on our website and pride ourselves in our transparency and value. Our fees are flat fees so they might work out to be a better value for you if you have a decent amount of money in investments. Plus we give advice on insurance and income protection and offer similar services for businesses.
Your personal circumstances have changed
Life is full of twists and turns and you never know what will happen next. If you get married, divorced, widowed, receive a big inheritance, or retire, you might require specialised advice for your situation. Each financial adviser will have their specialties and expertise. If their advice isn’t cutting it, then it might be time to switch financial advisers.
If you’re moving, you might want to find a financial adviser who is local to you, especially if you prefer to see them in person. However, many financial advisers these days use Zoom, Facetime, or Microsoft Teams to meet with their clients. At Plan With Neil, we are based in Coventry, but we serve clients in Coventry, the West Midlands, Warwickshire, and all across the UK.
Your financial adviser is retiring
At some point, your financial adviser is going to retire. If you’re younger and have an older financial adviser, it might be necessary to switch financial advisers because of this reason. Thankfully it’s easy to switch.
You’d rather go to an independent financial adviser
Not all financial advisers are independent. Some financial advisers are restricted and this means that they are limited in what insurance and pension providers they work with and what they can recommend. However, their advice and solutions might not be the best for your situation. The biggest advantage of independent financial advisers is that they can look across the whole market and find the best solutions for you and your unique situation.
Here at Plan With Neil, we are independent and we always prioritise our clients and their happiness.
You got a recommendation for a new financial adviser
Word of mouth is one of the best forms of advertising and marketing. The highest compliments a financial adviser can receive are good reviews and referrals. If you’re happy with the service you’re receiving from your financial adviser, it’s great to spread the word and share your good experience on sites like VouchedFor and Google Reviews as well as talking your friends and family about your financial adviser.
People are more likely to trust a recommendation from a friend or family member and if you’re not happy with your financial adviser and you get a referral from someone you trust, you might want to switch financial advisers.
How to switch financial advisers
So now that we’ve gone through the why, let’s talk about the how. After you’ve done your research and made enquiries, you notify your financial advisor in writing of your wish to switch financial advisers. Your new adviser will give you paperwork and you fill it out and then you follow up with both your former and current advisers to make sure the transition is smooth.
If you’re looking for a new financial adviser and are interested in Plan With Neil’s unique approach, book your free initial consultation with Neil today.