Questions a Financial Advisor Should Have Asked Before You Invested

Author:
Graham Harris
Mis Sold Investment Claims Manager
Date:
11/08/2020

A financial advisor should ask you about your current circumstances, what funds you have available and understand your attitude towards taking risk.

These kinds of questions are important to make sure that you are being recommended the right financial product. There is no one size fits all investment and your needs will be different from someone else’s. It’s the role of your financial advisor to find out what kind of investment will be right for your unique set of circumstances.

Your financial advisor is there to guide you to the right investment and should understand what you’re looking to get from it. They should not pressure you into making an investment or recommend a product that is not suitable for you.

If you believe you were mis sold a financial product get in touch with our Claims Managers for free initial advice. All mis sold investment claims are dealt with on a No Win, No Fee basis.

Call us on 08002605010 or request a callback and we will help you.

They Need to Get to Know You and Your Goals

First thing first, your financial advisor needs to take the time to understand your goals and your financial health. A professional will do this by carrying out a fact find.

A fact find includes asking detailed questions about your current financial situation, your overall goals and how much of a risk you’re willing to take with your investment.

They Should Ask about Your General Health

Your Financial Adviser had a responsibility to understand your health situation at the time of investing. Although talking about personal health can be uncomfortable, it is important that this discussion takes place so the adviser can make sure that the right product is recommended.  For example, a long term investment is unlikely to be right investment for someone with a serious illness or condition.

They Should Ask about the Amount of Money you have available and How Much You Want to Invest

It is important that your Financial Advisor understood how much money you had available at the time of investing. This is to make sure that they left you with an adequate Emergency Fund as well as making sure that you had sufficient funds to cover any planned expenditure, for example holidays or upgrading of cars.  They also have a responsibility to their clients to ensure that only a suitable proportion of their funds were exposed to risk.

How Much Risk are You Willing to Take?

Risk is an important part of financial investing. The Financial Conduct Authority says that any financial advisor must take the time to understand their clients ‘appetite for risk’ and their feelings about loss before they recommend a product.

Your financial advisor should ask about how you would take a loss on your investment and what you consider to be risky. They should use this information to understand what kind of person you are and to recommend a financial product that is best suited to you.

How Simpson Millar Can Help You

If you don’t feel that your financial advisor has taken the time to understand your concerns about investing, you may have been mis sold.

An investment should work for you in your current set of circumstances and not be something you should have to adapt to. It’s your financial advisors responsibility to point you in the direction of the right investment. We can discuss your case and take you through the claims process.

For free legal advice call our Professional Negligence Solicitors

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