Questions have been raised about the role of banks in giving financial advice. Independent financial adviser Alok Dhanda explains the value of the members of his profession.

FINANCIAL advisers were yet again in the limelight this week, but for all the wrong reasons. Panorama’s latest episode on the BBC went undercover with investment advisers in Britain’s high-street banks and posed the question, can you trust your bank?

The programme revealed how, in some cases, the advisers overstepped key principles about treating customers fairly, as laid out by the Financial Services Authority.

Thanks to their demanding sales targets and the sheer number of customers they see each day, these advisers face considerable pressure before they even begin to interact with a customer and impart financial advice.

In addition, advisers on the high street can only advise on a limited number of products and are also inclined to sell high-commission- paying products, often to the detriment of the customer.

Consumers still value the advice they receive from their bank, simply because they’ve always been there and are, for the most part, perceived as trustworthy.

If, instead, you’re keen to explore an alternative to the high street, where do you start?

From landing your first job and getting onto the property ladder through to getting married and starting a family, key turning points in our lives can put a strain, or indeed present an opportunity, when it comes to our finances.

But with over 30,000 financial products currently on the market, it would be a time-consuming process to research all of these on your own, and without in-depth know-how, you could find yourself feeling a little confused. This is where an independent financial adviser (IFA) can help.

IFAs offer sound, unbiased advice based on your personal circumstances. The adviser gathers numerous pieces of information about you; for example, they’ll need to know about your income, debts and savings as well as your short, medium and long-term goals and your attitude towards investment risk.

The IFA can then search the whole of the marketplace and find the most suitable product to match your individual needs and will compile a list of recommendations. Crucially, IFAs can advise on products across the whole market, and it’s up to you whether you follow through on their suggestions or not – there is no pressure to open any particular policy.

In the UK, there is a “live for today, worry about it tomorrow” culture that’s harbouring a host of problems. A significant number of people are under insured, have no income protection, no life assurance and no savings to speak of. This, combined with the fact that the UK has an ageing population, means that we need to take our finances more seriously and plan ahead.

Encouragingly, in light of the current squeeze we’re all facing on our incomes, an increasing number of people are beginning to take a closer look at their financial affairs and explore the best possible ways of receiving strong returns on their investments.

The key is to start saving as early as possible. Ideally, you should aim to save 10% of your monthly earnings. Even if you consider yourself to be financially savvy, ask yourself – are you still paying into the same savings account you opened five years ago?

When was the last time you looked at your ISA to see how it is performing against its benchmark? It’s easy to become complacent and stick with what’s familiar, but this attitude could lead to your investments underperforming in the current marketplace.

Your IFA listens to your needs and ensures that you are kept up-to-date with your policies and investments. This personalised service could forge a long-lasting relationship that goes beyond what you would typically expect to receive from your bank. Research shows that once a person finds an IFA that they like and trust, they’ll tend to stick with the same one for many years.

A good IFA will keep in touch with you to periodically re-assess your financial plans to see if these continue to match your lifestyle and goals.

Acknowledging that you need to re-assess your investments is the first step; the next is seeking advice. If you’re unsure about where to go, visit unbiased.co.uk where you will find a number of local IFAs or, even better, seek a recommendation from a friend or colleague.

:: Alok Dhanda runs Dhanda Financial, 52 Dean Street, Newcastle, NE1 1PG, tel: 0191 255 8960, email alok@dhandafinancial.com  or visit www.dhandafinancial.com