Investment advice is the provision of personal recommendations by a firm to its clients, or at their request, in respect of one or more transactions relating to designated investments. The recommendations must be suitable for the client. Advisers must comply with certain requirements, for example, gathering sufficient information to understand the client’s financial standing and needs. Some advisors may charge a one-off fee for a piece of work, or a monthly fee in return for ongoing service. Find out:theinvestorscentre.co.uk

A Guide to Dividend Investing in the UK: Earning Passive Income

The type of advice you receive depends on whether you have a lump sum you want to invest or you already have an existing portfolio of investments. Standalone investment advice typically focuses on the specific goals you have or your attitude to risk and the recommendations you receive will reflect this.

Alternatively, you can benefit from an integrated approach where the recommendations are incorporated into your wider financial plan and take into account different aspects of your finances such as retirement planning and wealth preservation. A comprehensive investment plan will ensure your goals and objectives are aligned with your overall strategy and risk tolerance.

It is also worth noting that an adviser who is independent can consider all the available products from across the market. This is a key difference to restricted advisors which are not able to offer this option. Independent advisers are usually referred to as ‘IFAs’ or ‘independent financial advisers’ and you can check whether the firm is independent by visiting the FCA’s Financial Services Register. If the firm is registered as an IFA you should be able to find details of their qualification and Statement of Professional Standing. Ideally, you should only engage with firms that are regulated by the FCA and meet their strict consumer protection rules.