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How To Choose The Right Wealth Management Company

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While you may feel that you do not have enough accumulated wealth to justify using the services of a wealth management company, it is worth understanding that it is not how much money you have, but that you have some money that you want to manage.  The difficulty comes though in choosing the right wealth management company.  This is because there are a huge spectrum of different services offered by organisations and individuals who provide wealth management.  Some will take on just your investment portfolio and manage and improve it; while others may assist you in managing the entire ins and outs of your finances.

It is important then to compare and research the different organisations and companies and the services they provide before you decide who gets the responsibility of managing and building upon your existing wealth.  The best and most trustworthy wealth management teams are the ones that fully recognise and respect your investment objectives, goals and interest

In the following article we will discuss some of the important things you need to consider in order to choose the right wealth management service for you.

Is Your Money Going To Be Safe?

Obviously it is sensible to be concerned about the safety of your money when handing over control to a wealth management company.  The only way you can sure that your money will be safe is if you choose to only conduct business with a company that is regulated officially by the Financial Conduct Authority, also known as the FCA.

As well as ensuring that the company you are conducting business with and giving control and responsibility of your accumulated wealth to is legally sound company that obeys stringent rules and regulations; it means that they are also covered by the Financial Services Compensation Scheme, or FSCS for short.  This is important as it means that all investments up to £50,000 and deposits up to £85,000 are protected.  If the wealth management company is likely to, or does, suffer from stability issues you will receive full compensation for any losses you suffer as a result of those issues.

What Do They Charge?

In the past, wealth management companies would hide a lot of their fees and how they were calculated.  That was until the reforms in the Retail Distribution Review were put in place a few years ago.  Now, all companies and individuals that offer wealth management services are required by law to be transparent when it comes to their fees and how they are calculated.

Therefore, when you are quoted a figure for wealth management services, as well as the overall cost there should also be a detailed overview of all the other charges.

Do They Have The Relevant Qualifications?

Also included in the RDR reforms was the necessity that all companies and individuals offering wealth management services should be properly qualified.  You should only conduct business with them if they are fully certified at Qualifications and Credit Framework Level 4.  Always ask to see evidence of these qualifications.

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