slimfynn

My statements on this thread was only a way to give help to those who may feel confused, have very limited knowledge on the subject or have been put off by an "advisors" in the U.A.E without really understanding their options to make an informed decision when choosing an advisor.

Yes you are right, the license from the Ministry of Economy is required by law and allows the firm to give insurance advice.
A central bank license allows the firm to give investment advice and is very hard to get hold too. Firms have to meet a more stringent criteria.

The reality is that its easier to run under the same umbrella of investment advice as a lot of investment products here have an element of insurance in them, therefore to the authorities (of the unregulated market) its the same thing.

Good news though, out central bank licenced was renewed again in november 2010 so that will take us up to november 2015.
Like i said before, make sure you are fully informed in your decision making.

Norm_uk

Indeed, my company has both Central Bank and Ministry of Economy licenses. We also have the Abu Dhabi Health Authority License so we can offer advice on medical insurance in Abu Dhabi as that's required now by law if someone is sponsored there.

N.

slimfynn

Fantastic Norm, Great to see the standards being raised for the good of the industry

commander

clearly then you dont work for P I C

Meow

It's all very well companies having licences, but it would be nice if so-called advisers actually had professional qualifications. The International exam is not worth the paper it is written on. Few even have the three basic CII papers either. Asking about professional qualifications is really quite revealing...

Millhouse

Even I have two of those CII papers which probably puts me more qualified than the majority of the advisors here!

One thing I did learn from the papers though - they are essentially ethics based and so like any qualification do not actually make you a knowledgeable advisor: that comes with experience and a desire to actually read around and study the products out there.

slimfynn

Certainly not my friend, certainly not.

Meow

True Milly, but once you get to the decent advanced qualifications you do get a certain amout of technical knowledge that is helpful I am amazed at how few 'advisers' ever talk to their clients about tax and the implications on the investments they flog them. Ethics are in short supply too sadly.

These threads end up depressing me.

slimfynn

Having a techical ability from qualifications is great as it gives a good foundation but experience of the local market and understanding how an expat thinks is equally if not more important than the qualification itself. From my experience trust and good reputation to a client is paramont.

I do talk about tax and understand it but i'm not a tax advisor, i'd rather leave that to a professional in that field.

Norm_uk

I've also come away from studying with the CII with the same conclusion that a good chunk of it is ethics based. I have no problems with this at all as ethics is in my opinion the key to everything. The most common problem people have with IFA's isn't that he/she couldn't answer a question pertaining to some vague tax law within 10 seconds but that their adviser didn't fully disclose the pros and cons of a product, made promises that were unrealistic and didn't have their best interests at heart when making a recommendation.

Technical knowledge is important though - especially important is a good grasp of the fundamentals. Specific details can be forgotten and looked up again...fundamentals are something you either know or you don't.

N.

Talking Stick

Finacial advisors, ha

Norm_uk

Posting a clip featuring an TV investment analyst and market commentator who gets it wrong (because no one else has ever got a prediction wrong in any industry but the financial sector right ) then chuckling at Financial Advisors/Planners is comparing apples to oranges if ever I saw it.

N

slimfynn

I don't understand why this clip was even put on here. Its funny that when the stock market is up why isn't any posting video clips on the web?
You know why?
That same person is too busy investing in the stock market and making money, he/she doesn't have enough time to put silly video clips on the web.

Blue Cat

ignore it is our residential troll, waiting for some Mods to wake up and ban him (time difference issue)

Millhouse

I agree. However, Ethics is something that people have or don't... passing an exam will not create ethical behaviour.

Let's face it, the CII exams are easy and anyone can pretty much pass them. I doubt a PIC salesman suddenly has an enlightenment and becomes ethical just because he has sat 3 exams. This is why it's about trust and why you need to find a good ethical advisor.

We are saying the same thing... my point is only that exams do not equal good advice.