Why use an IFA as opposed to my Bank?

The benefits of using an IFA rather than  a Bank adviser were perfectly illustrated this week, when the Financial Ombudsman Service released its data regarding complaints it had received in the last 12 months.

Without doubt the biggest offender leading to complaints were the Banks with 61% of the total complaints received. Complaints received relating to advice given by IFAs was down 1/3 to just 2%.

No industry is perfect and we would love these figures to be even lower but the reality is, it clearly shows that clients generally get far better advice and service from  IFAs,  as they are much less likely to complain.

It is further worth noting that of those complaints, less than 1/3 were upheld by the Ombudsman indicating that the majority of complaints against IFAS were unjust in any event.

Other offenders on the list were the sellers of general insurance. In their case over 90% of complaints against the sellers were upheld. Many of these complaints related to the sale of payment protection insurance.

Clients, I say to you now, it is vital you seriously consider whether this insurance is appropriate for you. Few insurers will pay out if you are self-employed and often the sellers of such insurance will only have one product to sell you and will badger you to take that whether or not it is appropriate.

At Moffatt Financial Planning Ltd, we have access to a range of insurers providing such cover, and we will not hesitate to advise against such cover if we feel it is inappropriate for you personally.

Moral of the story….. don’t get financial advice from your Bank and consider an IFA regardless of which financial product you are considering taking out. This way you can be sure the product has been properly researched and the best on the market for your own needs.

Better still get advice from Chartered Financial Planners, the most qualified of advisers…….. did I mention John and I are Chartered?