Certified Financial Planners (CFPs)

The general practitioners of the financial world, and among the best-qualified advisers, are the certified financial planners (CFPs). CFPs can be found in many different disciplines including accountancy, banking, investment and the law. A good planner will take a holistic or integrated approach to your financial affairs. He or she will identify your objectives, review the strengths and weaknesses of your current arrangements and then make appropriate recommendations that will be updated regularly. This will cover:

- investments

- risk management

- insurance

- retirement and estate planning, including wills and trusts

- school fee planning

- taxation

- cashflow planning

- special needs including long-term healthcare.

The planner co-ordinates your financial requirements and will work alongside your other professionals - for example your stockbroker, solicitor and accountant, making sure that everyone is working towards the same overall objectives. If you don't have a planner you still need someone to co-ordinate your financial affairs. Tax is a key issue for wealthy families and you might decide a char- tered accountant with investment expertise would make a good co-ordinator.

Over 1000 chartered accountants are authorised to offer investment advice and sell collective funds. You can find them through the Institute of Chartered Accountants' website. However, these firms do not offer stockbroker services so you or the accountant will need to appoint a firm to buy individual equities and bonds.

A growing number of solicitors offer a full portfolio management service and these can be found on the website for the Association of Solicitor Investment Managers (ASIM). If you are on the receiving end of an inheritance or planning to hand on your wealth, for example, or if you need to set up a trust for charitable purposes or perhaps to look after an incapacitated relative, then a solicitor-stockbroker might be an ideal wealth manager.

Stockbroker services

If investment management is your primary requirement, you should consider a stock exchange firm. The Association of Private Client Investment Managers (APCIMS) represents more than 90 per cent of private client stockbrokers, as well as an increasing number of other investment managers. Members have direct access to the stockmarket for buying and selling shares. The APCIMS directory of members provides a brief guide to the services offered by its member firms and gives an indication of the minimum size of portfolio accepted by the firm.

In theory there are three types of stockbroker service, although in practice the boundaries between advisory and discretionary are blurred and many investors require a combination of the two. The following definitions, therefore, are intended only as a guide:

Dealing or 'execution only' service

This service is designed for investors who do not require advice but who need a stockbroker to buy and sell shares for them. Some stockbrokers specialise in this low-cost, no-frills service and offer competitive rates and a rapid service - particularly via the internet.

Do remember though, with an execution only service you will get information on prices of shares but no comment or opinion on the merits of your choice. So don't expect a phone call even if your broker has a hot tip.