How to Choose a Financial Adviser in the UAE: A Guide for Expats
Living as an expat in the UAE, you might soon find yourself on the receiving end of numerous calls and messages from financial services companies. While some might dodge this bullet, most will, at some stage, require financial services—be it banking, insurance, or investment advice. If you're not keen on navigating these waters alone, enlisting the help of an independent financial adviser is a prudent choice. Here are seven critical factors to consider in your search:
1. Professional Qualifications
Always inquire about an adviser’s qualifications. Esteemed advisers often hold certifications from recognised bodies such as:
Chartered Insurance Institute (CII): A requisite for IA-regulated advisers, with level 4 being a common standard.
Chartered Institute of Securities & Investments (CISI): Focused on investments, required for SCA-regulated advisers.
Look for these accreditations to gauge an adviser's expertise. Level 4 qualifications should be looked for as it shows a baseline knowledge of the industry.
2. Reputation
A good reputation is crucial. Explore online for reviews, professional profiles on LinkedIn, and company websites. An adviser’s active engagement online and positive testimonials from real clients are good indicators of their trustworthiness.
3. Fee Structure
Understand how the adviser is compensated—through commissions or fees. Fee-based models often align more closely with your best interests, offering transparency and reducing conflicts of interest. Make sure you are aware of the full charges before making any decisions.
4. Advisory Process
A reputable financial adviser will take a thorough approach, including:
Understanding your financial goals and circumstances.
Creating a bespoke financial plan using softwares such as Voyant and Cashcalc.
Researching suitable products to accommodate your needs.
Regularly reviewing your situation and aiming to sit down 3/4 times a week.
Be cautious of advisers who rush the process or push products without comprehensive analysis.
5. Transparency on Charges
Be aware of all charges related to advice, products, and fund management. High fees can significantly impact your investment returns. Ask for a breakdown of all charges, including any fund management fees.
Conclusion
Choosing a financial adviser in the UAE requires careful consideration and research. By focusing on these five factors, you can make an informed decision, ensuring your financial well-being is in capable hands. Websites like Profezo and Money Saving Expat can be valuable resources in your search, offering lists of vetted advisers committed to fair and professional advice.
Book in for a 15 minute call to find out how you can put your savings to good use.
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Disclaimer: This blog post is for informational purposes and should not be considered financial advice. Always consult a financial adviser for personalised guidance.
