When you're choosing an investment company to invest in you should make an informed decision. The right independent financial adviser (IFA) can give you all the information you need. An independent financial adviser’s job is to offer impartial advice about which financial product or products fit your lifestyle and your goals.

Your independent financial adviser will look carefully at your finances, your commitments and your objectives, and will explain your options. You can ask as many questions as you like. By seeing an adviser you are making no commitment to buy anything.

Do you pay for the advice?
You pay a fee for the advice you get, either directly through a fixed upfront fee, or indirectly through a commission paid to him/her by the company or companies whose products the adviser recommends you buy. All IFAs must offer the facility for you to pay a fee for the advice given instead of charging you via commission from the sale of a product. The cost to you of buying shares in one or more investment companies will depend upon how you choose to make your investment.

What are independent financial advisers?
Independent financial advisers are professionals who have passed relevant professional exams, like the Investment Advice Certificate, the Advanced Financial Planning Certificate (AFPC), or the Institute of Financial Planning exams.

A minimum of three exams make up the Financial Planning Certificate (FPC) or a Certificate of Financial Advice (CeFA). Qualified advisers usually belong to a professional body and must be registered with the Financial Services Authority (FSA).

These financial advisers are independent - this is a key consideration for private investors. An independent adviser does not represent the interests of any one product provider company or product, and therefore is obliged to only advise on and recommend products that meet your needs.

How do you get advice from an independent financial adviser?
Once you have made contact with an IFA, he or she will usually make an appointment to meet you face to face.

When you meet with an IFA, he/she will ask you questions about why you have decided to invest and what you are hoping to get out of investing. The adviser will also ask you to describe your financial situation, usually by completing a questionnaire. The adviser will also discuss your attitude towards investment risk.

On the basis of this information, the adviser will give you advice about which investment product or products are suitable for your needs, in particular whether investment companies can be your best option.

The adviser can also help you decide on the best way to arrange your investment.

Choosing a financial adviser