Switching financial adviser: What to expect

We regularly meet people who want a second opinion on their financial plans, are unsure whether they're getting value from their current arrangement, or feel that their needs have evolved over time.  

But how do you know when it's time to review your current relationship, and what should you expect if you decide to move? 

What should a good financial adviser be doing? 

Before deciding whether to switch, it's important to understand what a good ongoing advice relationship should look like. 

A financial adviser should do more than review investment performance. They should help you in identifying your financial objectives and then build and maintain a clear financial plan that reflects those goals, circumstances and priorities. That means understanding the bigger picture, not simply focusing on one product or account.  

You should also expect your adviser to be proactive. For example, if tax legislation changes, pension rules evolve, or a major planning opportunity emerges, your adviser should be helping you understand how those developments could affect your plans.  

Many people don't realise what they may be missing because they have nothing to compare their experience against. It is often only when they speak with another adviser that they discover gaps in the service they have been receiving.  

Signs it may be time to consider a change 

Every relationship is different, but there are some common reasons people start exploring alternatives: 

• You haven't had a meaningful review for a long time. 
• Discussions focus primarily on investments rather than your wider financial goals. 
• You don't have a documented financial plan. 
• Cashflow modelling isn't being used to help visualise and test your long-term financial future. 
• Your adviser is largely reactive rather than proactive. 
• Major life events have occurred, but your plan hasn't evolved accordingly.  

A good financial planning relationship should leave you feeling informed, confident and organised. You should understand your objectives, know how your finances are positioned to support them, and feel comfortable discussing significant life events and concerns with your adviser.  

What happens when you switch financial adviser? 

One of the biggest concerns people have is that changing adviser will be difficult. 

In reality, the process often involves much less work than clients expect. Your new adviser will typically guide you through the transition, gather information about your existing arrangements and help manage the administration involved.  

That said, every situation is different. The length of time involved can depend on your existing provider, the types of investments you hold, and whether any transfers are required. Some providers are quicker and easier to work with than others, meaning timescales can vary.  

For this reason, it's helpful to focus on the long-term objective. While the transition period may require some patience, the goal is to establish a planning relationship that better supports your future needs.  

Should you speak to more than one adviser? 

Choosing a financial adviser is a significant decision given the long-term nature of this relationship. Speaking to more than one firm can help you compare approaches, understand the services available and determine who you trust to help guide your financial future.  

When meeting potential advisers, consider asking: 

• How often will we review my planning and what does the review cycle look like? 
• Do you use cashflow modelling? 
• How do you help clients adapt to legislative changes? 
• What is included in my ongoing fees? And are there any likely additional fees to come from planning or administrative changes.  
• Who else supports my adviser behind the scenes? 

The answers can tell you a great deal about the type of relationship you can expect. 

The right adviser should give you confidence 

A strong financial planning relationship should feel personalised, proactive and built around your objectives. It should give you confidence that opportunities are being identified, risks are being considered and important decisions are not being left to chance.  

If you're unsure whether your current arrangements are delivering that level of support, seeking a second opinion could be a valuable first step.