How advisers are paid, what they are obliged to do, and how to tell the difference.
Choosing who to take financial advice from is itself a financial decision, and often a larger one than anything that follows. The difficulty is that the qualities that matter — independence, judgement, honesty about uncertainty — are not visible in a brochure.
Ask how they are paid
This is the first question and the most informative. A clear answer, given without hesitation and confirmed in writing, tells you a great deal. So does a vague one.
Follow it up: does what you are paid change depending on which option I choose? If the answer is yes, the recommendation deserves more scrutiny — not because it is necessarily wrong, but because you now know what to check.
Ask what they are obliged to do
Not everyone offering financial guidance is under the same obligation. Ask directly whether they are required to act in your interests, and how conflicts are disclosed when they arise. A firm that welcomes the question is telling you something useful.
Ask who actually does the work
- Who will be my point of contact — and will it still be them in three years?
- Who covers my file when that person is away?
- How many clients does one adviser look after?
- How often will we meet, and what happens between meetings?
Ask what they will not do
A firm that claims to do everything usually does some of it badly. Clear limits — no tax returns, no legal drafting, no promises about returns — are a sign of a firm that knows its own boundaries and will tell you when you need someone else.
Ask what happens when things go badly
How were clients contacted in the worst market of the last decade? What was recommended, and to whom? How is a complaint handled, and by whom? The answers describe how you will be treated on the day it matters most.
Then trust the ordinary signals
Did they listen more than they spoke? Did they explain something you did not understand without making you feel foolish? Did they tell you anything you did not want to hear? Those are unglamorous tests, and they are better predictors than any credential on the wall.