assessment of requirements
“An IFA must begin by looking at the client’s current financial
position, as without a complete understanding of commitments,
existing investments and what needs to be achieved, it is not
possible to take a considered view and formulate a viable strategy.
Are the clients looking to continue managing their business in the
longer term, for example, and what are their five year horizons?”
Chris Cummings, the Director General of AIFA,
the Association of Independent Financial Advisers.
independent financial advice is preferable if you He noted that an IFA must begin by looking at
are seeking solutions which have been se- the client’s current financial position, as with-
lected for you without a limit on the products out a complete understanding of commit-
that can be harnessed to meet your objectives. ments, existing investments and what needs
The FSA currently has registered on its files to be achieved, it is not possible to take a con-
some 35,000 individuals whom it considers sidered view and formulate a viable strategy.
competent to provide financial advice, and “Are the clients looking to continue manag-
who are not tied to specific vendors’ products. ing their business in the longer term, for ex-
ample, and what are their five year horizons?
Independent Financial Advisers
Do they want to be in a position to sell their
business, perhaps, to free up capital for their
For a better understanding of what can be retirement?”
expected from an FSA-approved independent
financial adviser (IFA), we turned to Chris
Cummings, the Director General of AIFA, the
Advice to corporates
Association of Independent Financial Advisers. A point which soon emerged was that IFAs do
AIFA represents about 85% of the 4500 firms not confine themselves to advising private cli-
of IFAs which currently operate in the UK and ents. Some have chosen to specialise wholly
Mr Cummings is therefore able to take a con- in the corporate sector, advising companies
sidered view of the interface between advis- on tax planning and benefit schemes, for ex-
ers and their clients. ample. “The advice given in those situations
“From a regulatory point of view, an IFA must is increasingly of a more general business
start off with what is in the best interests of nature, covering such topics as acquisitions,
the client. Everything is driven from the posi- mergers and disposals where appropriate.”
tion of helping clients achieve their long-term These aspects of corporate management
objectives.” can prove highly sophisticated, with serious
Some IFAs have chosen to specialise wholly in the corporate sector, advising companies on tax planning
and benefit schemes, for example. The advice given is increasingly of a more general business nature.
The Informed Executive
45
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