Verify who would provide the advice
Confirm the firm and the person involved, then check the relevant authorisation and permissions. The Financial Conduct Authority, the UK financial services regulator, explains the process in its authorisation checking guidance (fca.org.uk).
Use that check for the provider actually named in the proposal. Familiar branding, an impressive title or someone else’s recommendation does not establish permission for the work you need.
Read the scope as a description of work
Look for a clear explanation of the questions the advice will address. Ask whether a proposed investment review includes a wider financial plan or whether the work is limited to a particular decision.
According to MoneyHelper, a UK money and pensions guidance service, adviser selection should include comparing scope and service as well as price. Its adviser comparison guidance (moneyhelper.org.uk) also explains that a written advice report and its recommendations should be clearly explained.
Ask what report you will receive and which questions the agreed work would leave open. Keep those limits visible when comparing proposals.
Understand the charges before agreeing
Advice charges can be fixed, hourly, percentage-based or a combination. Initial work and ongoing advice can have separate charges. MoneyHelper’s charging guide (moneyhelper.org.uk) explains that charges and how they are paid must be explained before commitment.
Useful questions include:
- What does the initial charge cover?
- How is the charge calculated?
- How and when would it be paid?
- What would ongoing advice cost?
The same charging method does not mean two proposals include the same work. Compare the explanation of charges alongside the service you are considering.
Ask for a clear explanation of recommendations
Ask how the written recommendation relates to the circumstances and goals discussed. Identify anything in the report that you do not understand before proceeding.
If the proposal includes transferring or combining pensions, existing benefits need attention. MoneyHelper’s pension transfer information (moneyhelper.org.uk) describes possible lost benefits or guarantees, charges and changes to available options.
Choose whether ongoing advice is needed
Ongoing monitoring is a separate choice from the initial advice. Ask what the proposed ongoing service would include and how its charges differ from the initial work.
A one-off piece of advice may be the scope you want to discuss. Resolve unclear points about the report, charges and later support before agreeing to a service.