Why to use an Independent Financial Adviser
1st December 2011
You may have noticed the recent media coverage following the findings by Which? that high street banks and building societies are giving poor advice and recommending inappropriate investment products.
In an undercover investigation by the consumer magazine, just five out of 37 advisers in banks and building societies were found to have given good advice about investments. The majority of these advisers showed a poor understanding of the risks of investing and made misleading statements about the features and costs of available products.
According to Which?, many of the bank and building society advisers recommended products that were inappropriate for its researchers, who were all aged over 60 and inexperienced investors. Even worse, added the magazine, just under half claimed there was no cost for their advice, with "only a handful” of advisers being upfront that banks and building societies make money through commission paid for the products they recommend.
A spokesman for Which?, which will report its findings to the financial services industry regulator and call for an investigation into standards of advice in banks and building societies, said: "Our investigation shows that the high street isn't the best place to go for investment advice. If in doubt, consumers should always talk to an independent financial adviser.”
Says it all really!