WHAT TO LOOK OUT FOR IN CHOOSING A FINANCIAL ADVISOR

Individuals, non-profits and corporations engage in financial activities that require an understanding of finance beyond the basic or average level. This maybe in the area of investment, insurance, financial planning, etc. Financial advisors provide many services, including assisting individuals and institutions in making financial decisions pertaining to planning for retirement, saving up for a child's college education or planning and developing investment strategies to manage assets and portfolios. They can charge fees for their services, which can be on an hourly basis or a percentage of the assets they manage for clients. Instead, some advisors charge commissions on trades they make for their customers. They may manage individual portfolio divided up by separate clients, or pooled investments such as hedge funds, pension funds and other related commingled assets.
Financial advisors can also serve as investment advisors in that they help individuals and institutions make important financial decisions. They are financial intermediaries who help connect investors to individual investments. The Financial advisor needs to place trades under a "best execution" standard, meaning he or she must strive to trade securities with the best combination of low cost and efficient execution.
The regulation of Financial Advisory practice in Nigeria comes under more than one agency and includes Security and Exchange commission (SEC)  who license and regulate Stock brokers, Asset managers and dealers. The National Insurance Commission (NAICOM) oversees insurers, brokers and agents who deal on annuities, life insurance policies and endowments. Retirement Savings Account are handled by Pension Fund Administrators who are regulated by the Pension Commission (PenCom). A financial Advisor in the course of his work has to deal with some or all of these agencies.
A Financial Advisor must therefore command a good understanding of Investments, Insurance and Pension. Each of these fields has a professional body that regulates the training and certification of professionals in these fields. They are Chartered Institute of Stockbrokers (CIS) for stockbroking and investment, Chartered Insurance Institute of Nigeria (CIIN) for insurance and Chartered Institute of Pension of Nigeria (CIPN) for pension. A good financial advisor should also have a background in Accounting and Taxation which are important elements in financial advisory.
In choosing a financial advisor, it is wise to request for the profile of the individual or the firm. This will help reveal the level of professionalism and proficiency in the field. Advisors who also belong to professional bodies are guided by the professional ethics and code of conduct of these bodies and any breach can lead to severe disciplinary action.
For more on choosing a Financial Advisor send an email to info@hillcrestprofessionals.com or call 08039286522