Investments & Regulations
Our free, helpful guide...
Are the risks too high to invest?
“Interest rates are so low at banks that it’s not worth investing”
“My friend’s mate has made lots of money on cryptocurrency”
These are all things that we have heard people say from time to time, but why bother consider investing at all if the risks are too high?
“You want to buy this stock because their share price is low”
"Don’t tie your money up in investments, you may not get your money back"
The simple answer is…with knowledge of investments comes a lowering of risk and it is always worth taking advice in this area, before parting with your hard -earned cash in a scheme that my not suit you.
How do we manage investments on behalf of our clients?
At Brighter Financial Services we consider our clients starting point (their current circumstances) what their financial objectives are (where they want to get to) and tailor our independent advice to help them achieve their objectives.
Often, this can involve a form of investment either through a pension, an ISA, Bond or General Investment Account. Regardless of the form in which an investment comes in, the approach we adopt in establishing investments for our clients, is the same.
We help create the right approach and investment choices for our clients through guidance and adherence to FCA principles, our regulatory body.
Applying these Principles to our Practice
Have specialised knowledge of the market and the products there-in.
We must have a full working knowledge of any pensions, investments, mortgages and insurance products that we recommend to our clients.
As independent advisers, we have access to a large range of funds to ensure our clients get above average performance and their plans remain fit for purpose. We assess the pension / investment providers and ranges of funds that we have recommended over the previous 6 months (currently circa 50 different investment & pension funds) to assess how they performed against other
options available on the market and if they continue to perform above average for a client. If, for whatever reason they do not, we have the ability to intervene and recommend an alternative to clients that may see improved performance for a very similar level of investment risk or similar performance for less investment risk. Quality service, performance of the fund, investment strategy, charges taken by the company and financial strength are all important concepts when considering a product provider.
Have the technical ability to align the right product with the needs of the client.
We must ensure that clients are matched with products that are right for the client by creating a central (for all as opposed to one) client proposition with regards to fund selection and client needs.
This central approach is known in the industry as a PROD matrix (an approach which ensures good product governance) and can be discussed with the adviser on the request of the client.
Having a central proposition for fund choice, helps us to be cost-effective; helping us reduce the costs incurred by clients in the process.
Making recommendations that are within the client’s interests
Independent Financial Advisers are not a target- based sales force and should never be set up to be as such.
We are requested, as part of good conduct by the FCA, to know our client, their aspirations and needs and how best we can align these needs to the right financial solution for them.
We use analytical tools and research to help us achieve the right solution for our clients; our recommendations are not based on guess-work or the fees we may receive.
One of the most commonly used tools is the cash-flow modelling tool. This provides clients, who wish to invest money, with an idea of the income that they may receive some time into the future. It is very important to use cash-flow modelling for clients who wish to retire on a set income so that all income and expenditure can be taken into account when assessing the impact of investments and financial management of a client’s money.
What we also do, once we have provided you with a recommendation, is to review, year on year
your investment strategy to ensure you are still on track to meet your financial objectives with updates to your cash flow model.
Investing can be done by any individual; there are providers available that don’t require a financial adviser’s instruction.
However advice around investments and pensions always looks at your bigger picture to achieve outcomes that are in your best interests and that are regulatorily correct.