Our Strength – Index – Prasan Vidya Bala Mandir

The financial advisor calls you before you have even made contact.
They ask you to sign blank forms.
You are pressured into taking out some products.
The advisor does not inform you about the risks of investment products.
The advisor does not accept any other witnesses at the advisory meeting.
You are blindsided with a sales prospectus right from the start.

This is how you can recognise serious financial advisors

You receive written confirmation of the most important facts.
The advisor gives you sufficient time to think about the matter before concluding the contract.
The advisor informs you about your options to object.
The adviser will tell you that you can also get a second opinion, for example from the consumer advice centre.
The advisor will go into detail about the status quo of your investment and try to include it in the new concept without wanting to terminate it prematurely.
Reputable advisors work with an advisory protocol.

If you want to change your financial advisor, you should check existing advisory contracts. If contractual deadlines have been agreed, you must adhere to them. If there are no such contracts, you can change your financial advisor without any problems without giving separate notice.

Fee vs. commission

Clients have the option of using different types of financial advisors. Some advisors work on a fee basis. This means that they receive a fee for their advice, regardless of the contracts concluded. Up to 150 euros per hour is common. However, investing in a fee-based advisor can be worthwhile, as these financial advisors can recommend suitable products completely independently of commissions.

If a financial advisor only works on a commission basis, clients can quickly fall into the so-called "commission trap" in https://exnessbroker.net/mt4/. In this case, the advisor does not recommend the best possible product for the client, but the one that earns the most commission.

Uniform advice protocol

The uniform advice protocol was developed by consumer centres so that fixed standards can be used in the area of financial advice. For consumers, this form of advice should be more comparable, more transparent and easier to understand. The advice protocol was introduced in 2010.

Within the framework of the advice protocol, consumers are informed precisely about the opportunities and risks of the respective financial products offered. The individual steps of the consultation as well as all information given are recorded in the protocol. The client then signs the protocol to declare that he or she has been fully informed. If things are listed in the protocol that were not explained in this way, the consumer can ask for rectification before signing.