How to Find an Ethical IFA to Support your Wealth Goals - Evolution Financial Planning

How to Find an Ethical IFA to Support your Wealth Goals

There are over 18,000 Independent Financial Advisors (IFA’s) in the UK, but not all of these advisors will specialise in ethical investments or know how they work. When it comes to finding an ethical IFA, the increasingly complex concepts and products can be overwhelming but how you spend and invest your money can have a huge impact on the world around you. As we become increasingly aware of this impact, women in particular, are aligning their ethical principles with how they spend and invest their money. The potential positive impact that can be created through ethical investments is significant which means that when looking for an IFA, it is important to find a financial advisor who understands and supports your ethics. The search for an ethical IFA can feel like you are entering another world, so in this article I have broken down why you should choose an ethical IFA, how to find an ethical IFA and what to consider in your search for an ethical Independent Financial Advisor to support your wealth goals.

Why Choose an Ethical IFA to Support your Wealth Goals

Unlike Restricted Financial Advisors who can only recommend certain products and providers, Independent Financial Advisors provide independent and unrestricted advice. In practical terms, this means that because your IFA is not tied to a single provider, your IFA can consider your specific situation and recommend all types of investment products that could fit your requirements and ethical aims.

Working with an ethical IFA can also be beneficial because not only can they help you to build an ethical investment portfolio, they will also build up a deep understanding of your situation which they can use to support you as you make other financial decisions. For example, in addition to offering support with ethical investment, we can also support you with mortgages, pensions, insurances and will and estate planning – find out more about our services here.

By working with an ethical IFA, your money will be contributing towards making important social and environmental changes within our society. Making small changes around your home such as recycling is a great starting point, but how you spend and invest your money also needs to be part of the change. By investing ethically, you will be using your money to do good in the world, whilst also having the potential to get financial returns. Ethical investing does not mean you will get less of a return than from ordinary investing, if anything, ethical investments are amongst the best performing!

How to Find an Ethical IFA to Support your Wealth Goals

Before starting your search for an ethical IFA, it is worth researching ethical investing through blogs, webinars and podcasts, so that you have a better understanding of what you are looking for. When searching for an ethical IFA, focus on how you want to improve the world as much as the returns you want to receive – think about how you want to improve the world socially and environmentally.

When looking for an Independent Financial Advisor, the first place to start is with the Financial Conduct Authority (FCA). In the UK, nearly all financial services must be regulated by the FCA. You can use the FCA to check the disciplinary history of an IFA firm and the employment history of your advisor before deciding on an IFA.

Once you have checked the credentials of potential Independent Financial Advisors, Which recommends setting up a meeting or phone call with at least 3 IFA’s. Having meetings with multiple advisors will give you a broader understanding of what to expect and will also allow you to compare how the different advisors work and which would be best to support your wealth and ethical goals.

What to Consider on your Search for an Ethical IFA to Support your Wealth Goals

Establishing the credentials of your IFA is one of the most important steps when it comes to finding an ethical IFA to support your wealth goals, but there are also a few other aspects to consider…

  • IFA’s can work regionally or nationally, so to save wasting time (for both you and the IFA), double-check that the IFA you are working with operates either nationally or within your region
  • Ensure the IFA understands both your ethical and wealth goals and their importance to you
  • Find out if the IFA has other ethical investment clients, as you are likely to want to an IFA who already has experience working with other clients who also have ethical requirements
  • Ask the IFA their role as an ethical IFA and how they work, so that you can gain an understanding of their practices
  • IFA’s can use varying fee structures so enquire as to how the ethical IFA charges their clients
  • The criteria used by the IFA to determine whether an investment opportunity is ethical or not – is their criteria in line with your ethical requirements?

Download our free guide to find out more about ethical investing and finding an ethical IFA

Finding an Ethical IFA to Support your Wealth Goals

With so many Independent Financial Advisors to choose from, if the impact of your investments is of primary importance to you, it is important to find an IFA who understands your ethical principles and will advise you accordingly. We have supported thousands of women to gain control over their finances with our ethical IFA services, including offering advice on ethical investing. If you have any questions or would like more information about our ethical IFA services to support your wealth goals – get in touch!

The value of investments and the income from them may go down. You may not get back the original amount invested.

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