In addition to this, they found that 41 per cent of advisers didnt adequately explain the deals they offered, 43 per cent didnt explain the repayment methods properly, and a staggering 63 per cent were actually breaking Financial Service Authority (FSA) regulations.
Further reports released in late 2006 showed that, of all advisers, those who worked for high street banks and building societies performed the worst with only 16 per cent meeting every set standard.
Teresa Fritz, personal finance campaigner for Which? Says: The FSAs reticence to name and shame firms from their mystery shopping exercise leaves people unsure about whether they are receiving the correct advice when dealing with complicated financial products.
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When making a heavyweight financial decision it is definitely worth seeking the advice of an Independent Financial Adviser (IFA) who specialises in that particular area.
Firstly you must check that the IFA in question is fully authorised, ideally with 3 years experience and qualifications which far exceed the minimum requirement. It is also a good idea is to ask the IFA to send you their keyfacts documents before you meet with them, which will allow you to check that they are truly independent and to compare costs.
You should insist any recommendations are made in writing and make sure you read through all the product literature before you sign your name to anything. If you dont understand something, dont be afraid to ask the adviser to explain it to you.
There are three key questions you should consider, and possibly discuss with your Financial Adviser before making a decision; whether you want the flexibility to overpay, underpay or take a payment holiday, if you would prefer to make fixed payments each month, and if keeping the short-term costs down is more important to you than the overall long-term costs.
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