How to find and use a regulated financial adviser
How to find and use a regulated financial adviser in Ireland
Once you have identified the type of financial advice you need, you can start looking for a regulated financial adviser. Choosing an adviser with experience in the area you need help with can make it easier to get advice that is relevant to your circumstances and financial goals.
Find more information on when you should get financial advice
How to choose the right financial adviser
Choosing the right financial adviser is important and there is no perfect way to find them. Many people find their financial adviser through a recommendation from friends or family. Irish research shows that many people also find financial advisers through their employer or through their trade union. Your current bank or insurance provider may also provide financial advice.
Be very cautious if engaging with a financial adviser that you have found online. Investment fraud is on the rise and sophisticated fraudsters are succeeding in scamming consumers out of large sums of money. Never send or give them any of your personal information or your financial information, such as bank statements and balances, or any other documents in advance online.
We would recommend that you meet your Central Bank-regulated financial adviser in person, face-to-face in their place of business, as registered with the Central Bank of Ireland and seek references from bona fide sources in advance, so you are sure they are an established and reputable business.
It is very important to understand how an adviser is paid and if they have links to any particular investment firms. You will want to know if the adviser is completely independent or tied to particular financial providers, as this can affect the range of products they can recommend. Also, make sure you understand how they are paid, including any fees, commissions or other charges, so you know what service you will receive and what it will cost.
Consider speaking to more than one adviser before making a decision, so you can compare their services, costs and approach and choose the adviser that best meets your needs.
Once you have identified a potential adviser, check that they are authorised by the Central Bank of Ireland by searching their registers
Choosing a regulated adviser is important because it gives you access to consumer protections if something goes wrong. For example, if you use the provider's complaints procedure and your complaint is not resolved, you can refer your complaint to the Financial Services and Pensions Ombudsman (FSPO).
What is the difference between an independent financial adviser and a tied agent?
Financial advisers must tell you whether they provide independent or restricted advice.
- Independent Financial Advice: It means the adviser must consider a broad range of products and providers across the market before recommending the option that is most suitable for your needs, circumstances and goals.
- Tied Agent: Typically works with a specific bank or life insurance company. They can only recommend products from the provider they represent and are not required to consider products from across the market.
Neither type of adviser is necessarily better. The right option depends on your needs and the service being offered. At your first meeting, the adviser should explain the scope of their service and whether it is independent or restricted.
How are financial advisers paid?
Financial advisers can be paid in different ways, depending on the structure their business operates. For example, an adviser may:
- Charge you a fee directly for their advice and service
- Receive commission from a financial service provider
- Receive a combination of fees and commission
You may also come across terms like ‘fee-only', 'fee-based’ or ‘commission-based’ when comparing advisers, so it is worth asking the adviser to explain what applies to their firm and how this will impact you.
When working with a financial adviser, you should ask them upfront about:
- What services are included?
- If you will pay a one-off fee or ongoing charges?
- If the adviser receives commission?
- If additional product or investment charges may apply?
- If ongoing reviews and support are included?
Before you agree or make any decision on any recommended product from a financial adviser, the adviser is required to provide a statement of suitability, which sets out why the financial recommendation is appropriate and includes details of the relevant fees and charges.
How should you prepare for a meeting with a financial adviser?
Before meeting a financial adviser, think about what you want advice on and gather information that will help them understand your financial situation. You may need:
- Proof of your identity and address
- Information about your income, savings, debts and financial commitments
- Pension details
- Investment records if any
If you are unsure what to bring, ask the adviser in advance. During the meeting, answer questions honestly, take notes and ask for an explanation of anything you do not understand.
Take time to consider any recommendation carefully and do not agree to or sign any document unless you have read and understood it.
A legitimate financial adviser will never need or ask for direct access to your personal bank accounts. A financial adviser will not need your bank account number, mobile banking details or your card PIN number. If you are asked for your personal banking details this is a red flag for a potential scam.
What questions should you ask a financial adviser?
Before taking out any financial product, ask:
- How will this product meet my needs now and in the future?
- What risks should I be aware of?
- What charges will I pay, and are they ongoing or one-off?
- What happens if my circumstances change?
- Is the product regulated and what protections apply if something goes wrong?
- What tax, if any, will I have to pay, now or later?
- What ongoing service or updates will I receive?
- Are there penalties or costs if I exit early or switch?
- What documents or information will I need to provide?
- Are there other options that may better suit my needs and circumstances?
These questions apply to most financial products and can help you compare your options and understand what you are signing up for.
Can you complain about a financial adviser?
Yes. If you encounter an issue with a financial adviser, use the adviser or firm's complaints procedure first.
If the adviser is regulated and your complaint is not resolved, you may be able to refer it to the Financial Services and Pensions Ombudsman (FSPO).
The CCPC making a financial services provider complaint page has detailed guidelines on how and who to complain to should you have an issue with a financial adviser.
Frequently asked questions (FAQs)
Do I have to accept my adviser’s recommendation?
No. Take time to consider the recommendation and make sure you understand the risks, costs and benefits before making a decision.
Should I get a second opinion?
You can. This may be useful if you are making a large financial commitment or choosing between several options.
How do I know if a financial adviser is regulated?
Check that the adviser or firm is authorised by the Central Bank of Ireland. You should also ask whether the products being recommended are regulated and what protections may apply if something goes wrong.What should I bring to my first meeting?
Bring proof of identity and any documents relevant to the advice you need, such as pension statements, investment records, insurance information or mortgage documents. If you found your financial adviser online, be cautious. Investment fraud is on the rise and sophisticated fraudsters are succeeding in scamming consumers out of large sums of money. First, ensure they are authorised by the Central Bank of Ireland. Never send any of your financial information to them online before you have established their Central Bank authorised status and have met them face to face in their place of busness.
What should I check before I leave?
Make sure you understand any recommendations, the reasons for them, the next steps and whether you need to provide any additional information. If anything is unclear, ask for an explanation in plain English.
