Key Mistakes to Avoid While Hiring a Financial Advisor in London

June 24, 2025

Hiring a trusted financial advisor is often a smart and strategic move, which can turn out to be very beneficial for most businesses. This is because advisors bring along years of experience, valuable insights and in-depth industry knowledge, which enables them to understand your business better than you do. Financial advisors not only create a financial plan for your company, but they also calculate each step, help you make the most of opportunities and tailor strategies to hedge against risks even before they arrive.

Sounds great, right? However, this decision of hiring a financial advisor can also go wrong if you don’t choose the right one. A wrong choice of advisor can make things go in the opposite direction. Especially in London, where the market is crowded with options, you’ll find a number of financial advisors offering services. Therefore, it becomes essential to keep in mind that one inaccurate selection can do more harm than good.

So, if you are considering hiring a financial advisor in London for your business, here are some common mistakes which you should steer clear of.

1. Hiring an Individual Advisor

The first and most common mistake people make is preferring an individual advisor over hiring a team. We understand that a financial advisor is supposed to be a person whom you can trust with your business details and planning; however, what business owners often miss is that having more people means a broader perspective, a higher level of expertise and more security. Therefore, it is highly recommended to choose a firm that offers financial advisory services so you can access varied knowledge and valuable resources.

2. Choosing a Planning-Only Advisor

If you opt for a financial advisor in London whose expertise lies in investment planning and budgeting, you can miss opportunities and even put your wealth at risk. Planning is definitely one of the most important aspects, but it is not enough to form a firm foundation for a business. A business requires more than just an investment portfolio and a budget plan; it also demands tax optimisation, estate planning, ongoing support, and well-structured retirement planning to survive. Therefore, choose the one who can help your business with a holistic approach and proactive strategies to reach your goals.

3. Ignoring a Track Record

Another essential yet often overlooked aspect when hiring a financial advisor in London is verifying their relevant experience and track record. With several available options, it can be confusing to choose the right financial advisor in London. This emphasises the need for a detailed analysis of their experience to determine if the advisors have worked with companies like yours, ensuring they can fully understand your needs and provide effective assistance accordingly. It is best to always ask for performance history, referrals, testimonials, and other relevant records to know about their skills and credibility.

4. Not Discussing Fee Structure

Another critical thing to consider is the fee structure. It is an investment in your success, but it is still crucial to know what you are paying before making a hiring decision. Your financial advisor in London can ask for a fixed fee, a percentage of your assets to be managed or an hourly fee. Some advisors also earn through commissions, which can influence their advice, as their preferences can shift from your best interest to selling the products for which they are getting commissions. So when you are hiring, ask clearly about their fee breakdown and fully understand their fees before committing.

5. Not Checking Qualification & Registration

Hiring a financial advisor is a crucial decision for your company; therefore, it should be treated like one. If you won’t hire an unqualified employee for your business, then why hire an advisor who doesn’t have relevant qualifications and experience? Look for a financial advisor who is highly qualified and FCA-regulated to ensure their trustworthiness.

When you hire a team of financial advisors, everything from planning to strategic decision-making is handled by them, but it is essential to make this decision with care, as you cannot just hand over your company’s future to someone you aren’t sure about. Always check the background and client record, ask questions about their experience, assess their skills, understand their fee structure, and be clear about your needs to ensure your company’s financial future is in the right hands.

Why Choose Wirewand?

Wirewand is a team of the most trusted financial advisors in the UK, with a commitment to always putting your interests and goals first. With our deep industry knowledge, a network of trusted financial service providers and a personalised approach, we support businesses across all sectors to make the right financial decisions and meet their goals.