What type of help do I need?

I decided to become a financial planner because it seemed like a business model that had a direct and positive outcome on people’s affairs. Having spent time working with various other professionals who can help with some facet of your finances, it always struck me how difficult it is for people from outside this world to make an informed decision about what they need. There are lots of good businesses offering good quality financial services in this country; it’s something we excel at as a nation. But it is also true that if you happen to be referred to a life assurance broker, there is a good chance you will end up with several insurance policies. So, here is a partial and partisan guide to the typical services people can engage for help with their money:

Private Bankers

As the name suggests, these individuals usually work for banks. They are a relationship management function for the many useful services that a bank can provide. They may introduce you to (their bank’s own) investment management services. They can also arrange lending based on a portfolio of assets. This can be particularly useful for wealthy individuals who have founded businesses. If you want liquid capital before you get a big cheque for selling your company, a bank is usually how this will be arranged. A private banking relationship is particularly useful if you have significant and complicated cross-border personal and business interests.

Wealth Managers (also see ‘private client investment managers’ and ‘investment managers’)

These individuals will specialise in investments. They deliver a service to you that will involve investing your money. It is often tailored in some way to your preferences. They will also usually assist with managing capital gains tax, and they may well help interact with other professionals or help facilitate regular payments from your portfolio for income. Wealth managers cannot typically make product recommendations for a pension or other financial product. While they will tailor their services to you, they are not ‘independent’ – they will typically invest in centrally researched options or ascribe to a house view. There are some exceptions to this, where individual managers have more autonomy. A lot of businesses that do this used to be called ‘stockbrokers.’ 

Financial Adviser (also see ‘IFA’ and ‘financial planner’ below)

Able to offer a range of financial products and services, they are intermediaries who will take a fee in exchange for directing you to appropriate third parties. They could well direct you on to others in this list (wealth managers in particular). There will usually be a mix of product, pension, insurance, taxation and investment advice.

Financial Planner

This is what I call myself. I can find appropriate financial products and investments for someone. But by calling myself a ‘planner’ I am emphasising a distinction from a ‘financial adviser.’  That distinction is the idea of starting with a plan. By drawing out broader goals and objectives first, I think we get to a better answer. Only when that bit is done do we populate it with the details mentioned in the last entry. A financial planner will also distinguish themselves by focusing on more complex, longer-term goals such as income planning for retirement or estate planning.

Restricted Adviser

If you ask for a recommendation, you will usually be told to seek an independent financial planner and to avoid restricted advisers; Google AI tells you this if you type in the question. Some are glorified salespeople for a set of products and services. But I have known good quality restricted advisers; the biggest advice firm in the UK is restricted (St James’ Place). If their bag of products is good and the individual is diligent, they can provide much of what an independent adviser will give you.

Mortgage Broker

Some financial advisers arrange mortgages as part of their service. (I do not.) There are also many mortgage brokers who specialise in them solely. An independent mortgage broker is almost compulsory these days, given the increasing complexity of lending rules and administration when borrowing to buy a home.

Insurance broker

These are advisers who are only able to recommend insurance products. They can be independent or tied to a particular provider. This is usually for life insurance, income protection or critical illness cover. Some will also arrange things like private medical cover, but generally not things like car insurance.

Accountant

Accountants help individuals and businesses comply with tax and administrative requirements. I think it’s worth highlighting what they don’t do. Because they don’t have permission to recommend investments or financial products, they can only give generic suggestions in those areas. This means that, if you have a complex pension question or you need to know what to do in detail, you will likely need to seek help from a financial planner. Accountants know this and will generally point you towards someone trustworthy.

Chartered Tax Adviser

Beyond a general accountancy practice are areas of specialism. There are large firms with departments of specialism that work a bit like law firms. For instance, I have dealings with specialists in trust and estate planning and those dealing with the tax affairs of overseas citizens living in the UK in the conduct of my work.

Solicitor

There are lots of needs that a solicitor may serve. But when it comes to personal finances, the main items would be estate planning and conveyancing. The writing of wills or setting up of vehicles like trusts is usually done by a solicitor. There is sometimes some crossover between specialist accountancy firms and legal firms in dealing with strategies for large estates.