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Tamara Smith, vice-president of the national non-profit Financial Planning Standards Council suggests this list of 11 questions investors should use to evaluate their adviser's performance.
1) Did the adviser establish the relationship with a thorough understanding of the client's unique needs, goals, circumstances? Did the adviser do his/best to gather appropriate data, ask questions, etc. so as to be able to provide a recommendation that is tailored to the individual's unique needs?
2) At the outset of the engagement, did the adviser formally articulate the terms of engagement clearly - ideally in a written form such as an engagement letter?
3) Did the adviser clearly articulate the method of compensation - is this transparent to the client or fuzzy? (It should be clear and transparent).
4) Did the adviser communicate and present the recommendation in a way that is clear and meaningful for the client?
5) Does the adviser help manage expectations and educate the client in the process of the delivery of their service?
6) If the adviser has the competence to [create]a financial plan, did they recommend a financial plan [in which]their decisions can be integrated and aligned with the client's overall situation.
7) Does the adviser engage in appropriate monitoring and review of the client's financial situation, and ideally, if there's a plan in place - review the plan.
8) Does the adviser reach out during the 'tough times' and is available to discuss questions, concerns, etc.
9) Does the adviser follow through on what they said they would?
10) Does the adviser act responsibly, ethically and with the competence to truly serve the client?
11) Did the adviser recognize where they may not have particular competence - but duly recommend other appropriate resources/professionals to help serve the client?