Switching financial advisors: what do you need to know?

At Regulated Advice, we speak to hundreds of people who are looking for advice.  About a third of people on the website, are looking to switch advisors. Many people feel the need to switch advisors due to a lack of confidence in their current advisor.

Signs that it might be time to change financial advisor

Here are some common signs that it might be time to change your financial adviser:

Poor service and lack of communication

If your financial advisor is unresponsive, doesn't communicate with you regularly, it can be a red flag. Communication should be at least once a year.

Performance issues

Often the financial advisor will get the blame for poor performance. However, it may be the natural cycle of the markets or a sudden market drop. But if your portfolio consistently underperforms over the medium term compared to the market. It might be a sign that your current advisor isn't effectively managing your portfolio.

High fees

If you can’t seem to justify the cost, it's worth considering a different advisor. High fees can significantly affect the performance of your portfolio.

Lack of expertise 

Don't be afraid to branch out to a specialist. If your advisor lacks the expertise, it may be better to find a new one. Having a specialized advisor means you are going to have a better suited financial plan.

Not happy with the advice

Your financial advisor advice should align you and your goals. Therefore, they should be actively listening to you, such as your goals, concerns and preferences. Having an advisor, you can trust eases the mind and makes the process a lot easier.

How to switch financial advisor

Switching financial advisors can seem daunting, but it's a lot easier than you think. Here are the steps you should follow:

Check redemption penalties

Redemption penalties can be a significant issue, especially with some restrictive advisor firms. Check as it may be prudent to wait until the redemption penalties have cleared.

Research advisor firms

Start by researching potential new advisors. This includes meeting with advisors. We recommend meeting with at least 3 new advisors or firms. 

Notify your current advisor

Once you've decided to switch and have found a new advisor, notify your current advisor in writing.

Complete paperwork

Your new advisor will take care of the transfer paperwork. This would have included a letter of authorisation and transfer forms.

Confirmation

Make sure you have both old and new advisor confirmation in writing.

Regulated advice can help….

We prepare hundreds of case studies each year where financial advice is sought. 

We have a unique system where we present your case to hundreds of advisors. In turn, the most suitable advisor will take on your case.

Regulated advice can connect you to a new advisor today.