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Is My Money Safe With A Financial Adviser?

Top Rated Advice

We have been included in VouchedFor’s 2024 Top Rated Financial Adviser Guide, distributed in The Times.

Our Locations

We have five local offices and can help if you are looking for a:

Financial Adviser in Edinburgh
Financial Adviser in Falkirk
Financial Adviser in Glasgow
Financial Adviser in Livingston
Financial Adviser in Stirling

If you would like to speak to an Independent Financial Adviser (IFA) then book your free initial consultation.

We examine the protections in place if you use a financial adviser

25th May 2023

Firstly, you need to make sure that your adviser is authorised and regulated by the Financial Conduct Authority (FCA). You can do this by checking the Financial Services Register.

In the UK, it is illegal to give financial advice without being authorised and regulated by the FCA. Additionally, if you do use an unregulated adviser, you have no protection from the FCA, Financial Ombudsman Service, or Financial Services Compensation Scheme if things go wrong.

The FCA has strict rules that adviser firms must follow such as conducting business with integrity, treating customers fairly, and ensuring the suitability of their advice. However, things can still go wrong, and if you are unhappy with the advice given, you can complain to the advice firm. The advice firm will then investigate the complaint and issue a final response letter.

Financial Ombudsman Service (FOS)

If you are not satisfied with the final response letter, you can then complain to the Financial Ombudsman Service (FOS). The FOS will investigate your complaint and issue a decision that you can either accept or reject. If you accept their decision, the adviser firm must comply with the ombudsman’s instructions—for example, by paying compensation. For complaints related to acts or omissions by firms on or after April 1st, 2019, the maximum award limit is £415,000. For complaints relating to acts of omissions before April 1st, 2019, the limit is £190,000.

Financial Services Compensation Scheme (FSCS)

If the adviser business is no longer trading then you can get in touch with the Financial Services Compensation Scheme (FSCS). Generally if you are claiming for bad advice regarding pensions/investments, and the advice was given after April 1st, 2019, you can claim up to £85,000 in compensation. For advice given between January 1st, 2010, and March 31st, 2019, this limit is £50,000. The FSCS also covers product providers, and the limits can be viewed on their website.

In conclusion, to ensure the safety of your money with a financial adviser, verify their FCA authorisation, understand the complaint process, and be aware of compensation limits from the Financial Ombudsman and the Financial Services Compensation Scheme.

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Is financial advice worth it?

This information is based on our current understanding and is subject to change without notice. This article is for general information only and does not constitute advice.  Whilst information is considered to be true and correct at the date of publication, changes in circumstances, regulation and legislation after the time of publication may impact on the accuracy of the article.

The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

We have local offices in Edinburgh, Falkirk, Glasgow, Livingston and Stirling and provide Financial Advice throughout Scotland. If you would like to speak to an Independent Financial Adviser (IFA) then book your free initial consultation.


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