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Difference between information and advice

If you're looking for savings or investment advice it's important to bear in mind a few key points:

Getting advice on investments

Investments may grow but this isn't guaranteed - they could fall in value or you could lose your money altogether. Because of these risks it's important to consider getting financial advice before buying an investment. An adviser will look at your individual circumstances and needs before making a recommendation, and will explain any investment risks.

FSA authorisation

Financial advisers may be authorised to offer advice in one or more areas, such as pensions, life/non-life insurance, general investments and/or mortgages.

Before making a recommendation, financial advisers must:

Comparing the service and products on offer

Under FSA rules financial advisers must give you documents carrying the Keyfacts sign. These are in a standard format and are designed to make it easier for you to compare what you're being offered by explaining:

(Firms can only say they offer independent advice if they recommend from the whole market and also offer you the option to pay a fee rather than commission.)

A financial adviser must also give you a 'key features' document before you buy any investment product (sometimes called a 'key facts illustration' for mortgages). This will describe the nature, aims and risks of the scheme in a standard format to help you understand and compare it to other products. It will also confirm how your adviser will be paid.

• Getting financial advice – learn more Opens new window

• Check if a financial firm is authorised Opens new window

Savings products

Because savings products are 'low risk' (you usually get back at least what you put in, and usually interest on top), financial advisers don't need to be specifically 'authorised' by the FSA to give advice about them. However, if an adviser is already advising you on investments they may help you choose savings products based on the information available.

Similarly, banks, building societies, and National Savings and Investments (NS&I) will give you 'information' to help you choose from their own savings range and they may offer you advice but the final decision will always be yours.

Of course you don't need to involve anyone in your savings decision if you don't want to: you can compare what's available yourself, using tables available in specialist magazines, the Sunday newspapers or online (including the FSA's comparative tables) and then make your own decision.

• Learn about the main types of savings and investment products

• Savings products offered by NS&I Opens new window

• Compare savings and investments with Money Advice Service tables Opens new window

How to find a financial adviser

You'll find financial advisers listed in telephone directories and business pages, and on the internet (the FSA link below offers a good starting point ). You can also ask friends for personal recommendations.

Most banks and building societies also have financial advisers. Bear in mind that they're often tied to selling their company's products, or a limited range of alternatives.

• FSA information on where to find a financial adviser Opens new window

Can a stockbroker give you advice?

Stockbrokers are authorised and regulated by the FSA. Some are authorised to offer an 'execution only service' only (they buy and sell shares for you in return for a fee but don't offer advice). Others are also authorised to offer advice on what to buy or sell. They will usually charge an extra fee for giving advice.

• Search online for a private client stockbroker or fund manager Opens new window

More useful links

• Tax on savings and investments

• Help with investments - Money Advice Service Opens new window

• Planning your personal finances

Useful contacts

• Money, tax and benefits contacts

• Free help and advice