This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, it is subject to change and we are not responsible for any errors or omissions.
Working with an adviser is an important decision. For many expats, simply asking for help with their finances is a big step, but it can be immensely helpful to build wealth, plan for retirement and navigate complex financial situations.
Choosing the right financial adviser is vital. Not all advisers are created equal. To make sure you get the best help, you need to choose the right professional for your goals, needs and situation. By evaluating specific traits in different advisers, you can narrow down your choice.
#1 Authorisation and Compliance
Different countries have various criteria when it comes to financial regulation. Some countries have less stringent regulatory oversight for financial advisers, which could increase the risk of receiving poor advice.
British expats should be mindful of this, especially if they live in a less developed country. If you are a resident here, consider working with an adviser who voluntarily subjects him or herself to higher standards.
If you are considering an adviser, ensure they are regulated and qualified. Ensure they comply with relevant regulations in your country of residence and meets industry best practices
#2 Types of Adviser
Financial advisers fall into different categories, which vary by country. In the UK, the two main types are “restricted” and “independent”, but other countries might class advisers differently. In the USA, for instance, the latter sometimes overlaps with a “fiduciary” adviser.
It is helpful to understand the key differences so you can narrow down the best type of adviser for your needs. A restricted adviser can only recommend products from specific providers or a limited range. This can narrow your choice of market options, but it may allow greater in-depth knowledge of those areas and efficient planning.
By contrast, an independent adviser provides advice on various financial products from different providers across the market. They are not tied to any single company or product, but they might lack the resources and brand recognition of a larger firm.
Understanding how a financial adviser gets paid is crucial in avoiding hidden costs and potential conflicts of interest. Advisers typically charge fees in one of three ways:
- Fee-Only – A flat fee, hourly rate, or percentage of assets under management (AUM).
- Commission-Based – Earn commissions from selling financial products.
- Fee-Based – A combination of both.
#3 Qualifications and Experience
A financial adviser’s qualifications provide insight into their expertise and knowledge. In the UK, advisers must hold a Level 4 qualification as set by the FCA.
Whilst qualifications are essential, real-world experience is just as important. For expats, this is especially true. A highly qualified adviser in the UK may be very capable of helping clients living in the UK. However, without experience working with people living overseas, they might lack the relevant experience to help clients address cross-border challenges in their financial planning.
Communication skills are also vital in a financial adviser. Financial advice and planning involve complex topics, and a good adviser should explain things clearly and concisely. They should be patient and approachable, listening carefully to your needs and responsive.
#4 Reputation and Positive Client Reviews
What are others saying about the financial adviser you are considering? Have they worked with people “like you” in the past, and what experiences have they had?
A reputable adviser should be transparent and willing to provide proof of their successful track record. This might take the form of testimonials, client case studies and reviews on the adviser’s website or LinkedIn profile.
You can always ask for references from current or past clients or check online reviews and ratings on platforms like Trustpilot or VouchedFor.
#5 Personalised Financial Planning
Financial advice should never be a one-size-fits-all solution. A competent adviser will take time to understand your personal and financial circumstances before making any recommendations.
Remember, your financial situation, risk tolerance and goals are unique. A generic template and pre-packaged solutions will not account for your specific income, family situation and risk profile.
Look for an adviser who takes time to understand your unique needs and shows a willingness to be flexible in adjusting strategies as your financial situation evolves.
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Choosing a financial adviser requires careful consideration. By assessing these key traits, you can find a trusted adviser to help you secure a prosperous financial future.
We hope these insights have been helpful. If you’d like to make sure you’re taking the right steps to safeguard your financial future, please get in touch.