How does an expat in the UAE know if he can trust a financial advisor?
Many expats in the UAE receive phone calls from various companies offering financial advice.
We will discuss in another blog further about who the companies behind these phone calls are, but nowadays also most banks are having a wealth manager or a relationship manager who offers financial advice. Together with the already established financial advisors more expats are being called to sit down for a meeting with a financial advisor who can help them to plan their future.
What is important to know in order to trust a financial advisor? I have made 10 questions which you should ask yourself before you decide to trust a financial advisor.
1)How is the financial advisor paid?
2)Is the financial advisor acting in your best interest?
3)What is the reason the financial advisor is recommending a certain fund?
4)Does the financial advisor have a sales quota?
5)How much time does the financial advisor spend on portfolio management?
6)What is the investment strategy from the financial advisor?
7)What is the credential from the financial advisor?
8)What service can you expect from the financial advisor?
9)Have people shared positive or negative reviews from the company that the financial advisor is working for?
10)Do you understand the investments that your financial advisor is advising to you?
There has been one fund called LM Investment Management Ltd Managed which clients worldwide and a lot of expats in the UAE have been talked into. The fund collapsed, there was fraud involved. The fact sheet and investment evaluations provided to clients were incorrect. The fund was also not licensed and the company behind the investment was paying financial advisors high commissions when they brought new investors. I have experienced firsthand that advisors have told clients that it was a low risk and safe fund, when in reality the fund was nothing like that. That's why it's very important that clients qualify the advisor when they first get introduced to them.
Posted on Wed, October 28, 2015
by Simon Snelder filed under