Vetting an advisor to review a portfolio you inherited

An inherited portfolio can feel overwhelming. You may own stocks you don't recognise, funds that made sense to someone else, or cash sitting idle while you decide what to do. Before you make any moves—or hand it all to the first advisor who offers to "clean it up"—you need someone whose judgment you can trust and whose credentials you can verify. The right advisor will clarify what you own, explain whether it still fits your life, and help you make deliberate choices. The wrong one might churn it for fees or push you toward products that benefit them, not you.

Finding that right person means going beyond a warm introduction or an impressive office. You need to run concrete checks that any legitimate advisor will welcome.

Check the regulatory register first

Ask the advisor for their FSCA licence number—the Financial Sector Conduct Authority regulates investment advisors in South Africa. Do not just write it down; search it yourself on the FSCA website (fsca.org.za) and confirm the name, licence type and any restrictions or disciplinary history. A legitimate advisor will expect this question and have the number ready.

While you're checking, note whether they hold a Certified Financial Planner (CFP) credential or equivalent professional qualification. These require ongoing training and ethics audits. Ask them directly: "What's your highest financial qualification and which body issued it?" Then verify it. This takes fifteen minutes and eliminates a huge category of risk.

Request proof of independence

Ask: "Which product providers do you recommend most often, and why?" If the same three names come up every time, that's a yellow flag. A truly independent advisor should work with a range of providers and explain why a specific fund, policy or investment vehicle suits your circumstances, not theirs.

Request their conflicts of interest statement in writing. They're legally required to have one. Read it carefully. Do they earn commission from the products they sell? Do they own stakes in any fund managers they recommend? Do they have volume targets that might incentivise them to trade your portfolio more than necessary? None of these things automatically disqualify them, but you need to know and factor it in.

Phone their references

Ask for contact details of three or four existing clients—ideally people who inherited money or faced a similar situation to yours. Do not rely on email replies. Call them. Ask:

• Did the advisor take time to understand your situation before recommending anything?
• Did they explain fees clearly and in writing before you started?
• Have they reviewed your plan regularly without pressuring you to trade?
• Would you refer a friend?

Listen for hesitation or vague answers. References rarely trash an advisor unprompted, but genuine clients will speak concretely about their experience.

Ask what they'd do with your specific portfolio

Bring a recent statement or list of holdings to an initial meeting. A good advisor will ask questions before offering opinions: How long do you plan to hold these assets? Do you need income from them? What are your other financial commitments? Are you comfortable with volatility?

Then they'll explain, in plain language, which holdings might stay, which might go, and why. They should justify recommendations against your goals and timeline, not against an arbitrary "optimal" model portfolio.

If they immediately suggest selling most of what you own and buying their favourite funds, that's a signal to get a second opinion. Inherited portfolios sometimes need restructuring, but wholesale replacement within weeks rarely makes sense.

Before you commit, confirm their fee structure in writing. Will they charge you a flat annual fee, a percentage of assets under management, hourly rates or a combination? How often will they review your plan? What happens if you want to move your money to another advisor? These terms should be crystal clear before you sign anything.

A strong advisor makes inherited money feel less like a burden and more like a tool you understand and can use with confidence. Take time to vet them properly. When you're ready to move forward with someone, Strove's verified independent financial advisors have been through similar screening—you can compare their qualifications and read reviews from other clients in the same position you're in.