Why do I need advice

The burgeoning choice of financial products on the market – more than 30,000 (source IMA, DTI, AKG) at the last count – can be daunting and lead many people to leave their money languishing in the wrong place. Headlines present a bleak picture of our financial future if we don’t start saving more wisely for our retirement, making it clear that we should be doing more about putting our money through its paces. Whether you’re looking for the best way to save for retirement, a mortgage, advice on how to invest for the future or protect you and your family with a life assurance policy, the most suitable product for you is almost certainly out there. It’s simply a case of how to find it.

Now perhaps more than ever it is important to get sound, unbiased advice on what financial products you should have, especially those of us who are too busy or who lack the confidence to research the market on our own. If you are wondering what sort of advice is out there, where and how to find it and how much it will all cost, read on.......

Who can provide the advice required?

There are currently three main ways of seeking financial advice for products such as life assurance, pensions and collective investments like unit trusts/OEICs, Individual Savings Accounts and Child Trust Funds; either through an independent financial adviser, a multi tied agent or a tied agent.

INDEPENDENT FINANCIAL ADVISERS (IFAs) offer unbiased financial advice to their clients and recommend the most suitable products, if any, after researching the whole market. The key differentiator is that they act on your behalf and will offer you the option of paying by a fee, as well as the option of paying by commission.

TIED AGENTS can only advise on the products of one provider.

MULTI-TIED AGENTS are financial advisers allowed to recommend the products of a limited selection of providers, rather than just one.

The benefits of Independent Financial Advice

The big advantage of independent financial advice is that you have access to all the products on the market through a qualified practitioner. An IFA’s job is to research and recommend the most appropriate financial solutions after asking their clients a whole range of detailed questions about their circumstances, their financial goals and their attitudes to risk. IFAs are answerable to the FSA to ensure that they keep to the rules. As they act on your behalf they provide personalised written reasons why they have recommended particular products or a course of action.

Tied and Multi-tied advice
Many people buy financial products through multi-tied or single-tied agents, such as the sales staff who work at their bank or building society. When they want a pension or investment product they often find it easier just to nip into their bank and accept what is sold through that organisation’s relationship with one or a few financial product providers. The person providing you with product information (unless they are an IFA) are acting on behalf of the company they are employed by or have a tied relationship with. Many people buy products this way, usually because they feel more comfortable buying from a big name organisation and assuming, sometimes incorrectly, that they are bound to get a good deal. What they are actually getting is limited information from a small selection of products. Confusingly, some banks also have an IFA available upon request!

But before you go ahead, ask yourself the following questions:

1 Would you want advice?
Would you want advice on the whole range of products available rather than on a limited number of financial products or provider companies?

2 Do you want your adviser to be independent?
Do you want your adviser to be independent of any commercial relationships, which may restrict the advice they give?

3 Do advanced qualifications matter to you?
Do advanced qualifications matter to you, particularly in the sector you are seeking advice?

If the answer to any or all of these three questions is ‘yes’, then independent financial advice is likely to match your needs.

Those who work overseas or have moved abroad to enjoy a different lifestyle often want to pay as little tax as is legally possible.

Regarding savings and taxation, what applies to you in your specific circumstances is generally determined by the UK tax regulations and whatever tax treaties exist between the UK and your host country. The UK has negotiated treaties with most countries so that UK expats in those countries are not taxed twice. It makes sense to have an Independent Financial Adviser at home and abroad who understands the host country’s rules and regulations. Basically if a non-domiciled UK resident is employed by a non-UK resident employer and performs all of their duties outside of the UK, the income arising is only subject to UK tax if it is received or remitted to the UK.

It is important to ensure you are investing in an offshore investment that is appropriate for the level of risk you wish to take. If you are an expatriate you should find out if you are aware of all the investment opportunities available to you and that you are minimising your tax liability. Talk to a financial adviser before investing money offshore as it is a complex area.

The end of 2007 saw an important change with the introduction of the Markets in Financial Instruments Directive (MiFID), affecting all IFAs advising clients outside the UK (within the European Union. If you live in the European Economic Area you will need an IFA who has MiFID permissions.

Highworth Financial Services Abroad is ideally placed to offer you the advice you require in its capacity as a fully authorised UK IFA with MiFID permissions for all EEA countries.

What Can Highworth Financial Services Abroad do for you?

One of our fully qualified advisors will carry out a full analysis of your aims and needs, from this we will produce a full report and recommendation.

We have access to a full range of solutions to all of your needs both in the UK and overseas, so whether it be a domestic mortgage in the UK or a fully approved off shore pension plan we are able to source products designed specifically for you.

In addition to the standard products offered by most UK based IFAs we can also offer our expatriate clients a full private banking service based on the Isle of Man. We are also proud to offer our Spanish based clients a suite of products specifically designed to comply with the complexities of Spanish taxation rules.

Where and When can we provide advice?

From our offices in Sussex we are able to provide individual one to one advice in most areas of the UK. We are also happy to provide advice over the phone or internet if this is required. Additionally we are able to offer a similar service in Spain, where we use UK registered advisors to provide advice. This approach ensures that we are able to provide consistently high standards of advice to all of our clients.