Register of financial planning firms to be launched

A register of financial planning firms which meet set criteria is to be launched and made available to consumers.

Launched by the Institute of Financial Planning (IFP), the register will point consumers towards those businesses which "do what they say on the tin".

The Accredited Financial Planning Firm register will include only those companies which have a "high level of consistency around practice", the IFP said.

Among the criteria for inclusion on the register will be a consistent fee structure and the provision of cashflow modelling, IFP chief executive Nick Cann said.

He added he hopes the register could develop into a forum for members to share best practice and engage in debate.

The IFP is hoping to unveil the first 25 firms on the register at its annual conference in October.

Cann said: "The register will highlight financial planning firms which actually do what they say on the tin.

"Currently, many firms suggest they provide a financial planning service but, in reality, get nowhere near it, and are misleading the public into the bargain.

"By choosing an Accredited Financial Planning firm, consumers can be confident of receiving an effective financial planning service, helping them through the complex maze the FSA has created."

Firms must pay £750 annually to be on the register with an additional £25 per FSA-registered adviser who is an IFP member and £75 for non-members.

Firms wishing to be included on the register will have to demonstrate the following criteria (non-exhaustive list):

• Provide a full financial planning service, including cashflow modelling.
• The financial planning proposition is clearly communicated and promoted to clients in marketing materials.
• Policies and procedures are consistent with the IFPs Code of Ethics and Practice Standards.
• A consistent fee structure present - company-wide. A clear and visible investment philosophy. Staff are aware of the financial planning service and how it differs from financial advice.

Meanwhile staffing criteria includes:

• On application, at least 50% of the firm's FSA registered advisers must be qualified as a Certified Financial Planner professional or Chartered Financial Planner (with AF5).
• All advisers directly providing the financial planning service to clients on the firm's behalf will have been tested on their financial planning skills at an advanced level or will be mentored/supervised by such an adviser.
• All advisers will be members of a relevant professional body and agree to abide by that body's code of ethics and practice standards.

 Click here for more details about the register