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Financial Advisor: 10 Questions to Choose the Right One

The first items are qualifications and credentials, which tell about a person’s capabilities. More detailed questions include experience, recent courses, and their application in a previous job. It is a necessary point since knowledge of current trends and expertise define a professional.

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The second parameter is the list of provided services that a financial advisor can offer. These include credentials, licenses, and experience and can determine the ultimate cost of the collaboration. It is essential since the candidate must clearly understand what tools and how to apply in a particular case for practical cooperation.

In the third step, it is necessary to obtain consent and approve it in writing a document of fiduciary obligations. It implies specific behavior of the candidate, in particular, to act in the interests of the employing company. Differences in views can lead to conflict, which is unacceptable for a financial manager. He should openly discuss emerging issues and find a compromise. The written agreement is essential since it is legal protection.

The fourth point is the financial plan, which requires specific background and its implementation. It aims to compile the likelihood of financial management outcomes and can be triggered in various forms. According to Nekhaychuk et al. (2019), it is the main form of enterprise goal realization. Financial planning is necessary to form a clear picture of the company’s development and increase profits.

The fifth issue that needs to be clarified is the client’s compliance with the competencies and capabilities of the consultant. Some experts focus on a specific range of investment assets and therefore have experience in this area. An important task is to find out if the typical strategy and principles of the applicant are suitable for a certain level of assets. The point is significant since the capabilities and experience of the consultant must fit the given parameters.

The sixth criterion is based on the provision of information about personal or team collaboration. At this stage, it is crucial to understand who exactly will solve the assigned tasks and what qualifications these specialists have. As mentioned earlier, people may have different opinions because of diverse experiences and qualifications. Personal or team collaboration is essential because the distribution of roles and the work outcome may be various.

The seventh point is related to the method of payment for the services of a financial consultant. He can receive an hourly wage or a percentage rate based on various criteria. These include managed assets, transaction fees, and commissions for buying or selling stocks. The main thing is to provide full reporting, including the costs of the services of a financial advisor (Paying for Financial Advice, 2021). It is essential since the directors must understand all items of income and expenses concerning time intervals.

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The eighth question to ask is the approximate amount for the services provided. The consultant should determine his capabilities and benefits for specific tasks and the need to use third-party products. Circumstances can change during the work process; hence, an experienced adviser should measure them immediately. This issue requires attention since managers need to get a complete cost picture of the request being submitted.

The ninth point is a possible conflict of interest in the background of a consultant’s work for two or more organizations. It consists of considering the possibility of bias because of cooperation with another company. Conflicts can be resolved through collaboration, such as avoidance, control, or disclosure (Managing Conflicts of Interest, 2020). It is worth agreeing on this point since identifying information in the work process may end with the contract termination.

The last parameter refers to a person’s self traits and includes unethical or illegal actions throughout the career. The legal activity provides a long-term development perspective, and ethics expresses the code of honor of an organization that a financial advisor may become a part of. The parameters are important because they ensure stable and long-term development.


Managing conflicts of interest for tax (financial) advisers. (2020). TPB.

Nekhaychuk, N. D., Nogas, I. L., Nekhaychuk, E. V., & Dzhelilov, A. A. (2019). The financial planning and its tasks in modern models of enterprise management. 38–41.

Paying for financial advice. (2021). FMA.

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